Jakarta. Indonesia has attracted a total of Rp 1,418 trillion (around $90.2 billion) in investment throughout 2023, surpassing what the government has targeted for that year.

President Joko “Jokowi” Widodo wanted the country to generate Rp 1,400 trillion in combined investment last year. Data shows that investments coming from domestic investors totaled Rp 674.9 trillion in 2023. Foreign direct investment (FDI) hit Rp 744 trillion.

“The overall investment in 2023 saw a 17.5 percent year-on-year growth,” Investment Minister Bahlil Lahadalia told reporters in Jakarta on Wednesday.

“And so we have achieved 101.3 percent of the target,” Bahlil said.

Bahlil tried to dispel doubts over the investments in Indonesia being Java-centric. Data showed that about 51.5 percent of the combined investments went to regions outside Java.

“Approximately Rp 200.3 trillion of combined domestic and foreign investment throughout 2023 went to basic metals and non-machinery industry,” Bahlil said while adding that it was the most popular sector that year.

The Investment Ministry puts Singapore as the largest foreign investor in 2023 as FDI from the close neighbor totaled $15.4 billion. Followed by China ($7.4 billion) and Hong Kong ($6.5 billion). Japanese investors invested $4.6 billion in Indonesia over the said period. In fifth place is Malaysia at $4.1 billion.

According to Bahlil, Singapore is actually a financial hub for Indonesian investors as the archipelagic country still lacks an adequate financial center. Indonesian businesses favored putting their money in Singapore first rather than directly making the investment. 

Data shows that FDI had grown by 13.7 percent year-on-year. However, this growth is still smaller versus 2022 during which the country saw a 44.2 percent increase in FDI. Bahlil attributed the slower growth to the increasing baseline, among others. 

“In 2021, the investment target was around Rp 900 trillion, but then the goal grew to Rp 1,200 trillion the following year," Bahlil said.

"The government then eventually raised the [target] baseline to Rp 1,400 trillion. So there are two different baselines. Another reason for the slower FDI growth is we have to admit it is not easy to attract investment in the political year ... as some investors are on wait-and-see mode,” he added.

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