Bandung. Foreign Affairs Minister Retno Marsudi said Monday that the foreign investments that Indonesia recorded had skyrocketed thanks to the economic diplomacy under Joko “Jokowi” Widodo’s presidency.

Indonesia has been pursuing an economy-heavy foreign diplomacy in a move to get more investments into the country. When meeting world leaders in bilateral settings, Jokowi more often than not would invite countries to make an investment. The sectors that he offers vary, ranging from green energy to infrastructure developments. Oftentimes, he would promote investment opportunities in Indonesia’s megaproject of building a new capital from scratch. Jokowi has also instructed his government to cut the bureaucratic red tapes for interested investors. Jokowi’s economic diplomacy resulted in skyrocketing foreign investments, compared to when he first assumed office a decade ago.

“In 2014, [Indonesia] attracted $28.5 billion in foreign investment. In the first nine months of 2023, the foreign investment reached approximately $37.8 billion, up by over 32 percent,” Retno said when giving her annual press statement in Bandung on Monday.

Retno then went on to say that economic diplomacy had resulted in some strategic investments. As a case in point, the Emirati clean energy firm Masdar --in partnership with state-run electricity firm PLN -- invested in Southeast Asia’s largest floating solar plant in Cirata. Indonesia’s East Asian partners have invested in the country’s transportation systems. China, a major foreign investor, heavily invested in the $7.3 billion high-speed train that links Jakarta and Bandung. Japan has committed to partake in further expanding Jakarta’s mass rapid transit (MRT) system.

“Indonesia’s economic diplomacy has resulted in some strategic investments,” Retno said.

She told the forum that Indonesia’s economic diplomacy had clear objectives, namely: “driving economic growth, promoting people’s welfare, and strengthening national self-sufficiency.”

On many occasions, Jokowi often said that attracting investment was crucial to job creation. Indonesia is home to approximately 270.2 million people. The National Statistics Agency (BPS) reported that Indonesia’s unemployment rate stood at 5.32 percent as of August 2023.

Jokowi, whose presidential term will end in October, wants Indonesia’s economy to grow between 5.1 percent and 5.7 percent this year. However, this would call for Rp 1,650 trillion (approximately $106 billion) in combined foreign and domestic investment, according to Jokowi. 

Government data puts Singapore, China, and Hong Kong as the top three largest foreign investors in Indonesia as of January-September 2023. Singaporean investment stood at $12.1 billion over the said period. China and Hong Kong made investments worth $5.6 billion and $5.2 billion, respectively.