Jakarta. Indonesia has attracted Rp 678.7 trillion or about $45.2 billion in investment in the first half of 2023, putting the country almost halfway through its target for this year.

Indonesia is aiming for Rp 1,400 trillion in realized investments in 2023. The government on Friday announced that foreign and domestic investors had put about Rp 678.7 trillion into the resource-rich country throughout Jan-June 2023, marking a 16.1 percent year-on-year increase. 

“So we have achieved 48.5 percent of our target this year. I'm optimistic that we will be able to record Rp 1,400 trillion in realized investment," Investment Minister Bahlil Lahadalia told a press briefing in Jakarta on Friday.

Government data shows foreign direct investment (FDI) accounted for 53.5 percent or about Rp 363.3 trillion of the investment posted in the first half of 2023. 

Singapore became Indonesia’s largest foreign investor in Jan-June, reaching $7.7 billion. Followed by China ($3.8 billion), Hong Kong ($3.5 billion), and Japan ($2 billion). The US became Indonesia's fifth largest foreign investor by bringing in $1.6 billion during that period.

According to Bahlil, Singapore over the past years has remained in the first place as Indonesia's top source for FDI. Singaporean investment in Indonesia totaled $9.4 billion in 2021 and the number then rose to $13.3 billion the following year.

However, Bahlil told the presser that the Singaporean FDI inflows were "mostly Indonesian money". Many Indonesian entrepreneurs treat the close neighbor Singapore as a "hub" for their investments.

The FDI inflows in Jan-June 2023 mostly went to basic metals, metal goods, non-machineries and equipment industry. This sector saw $5.4 billion in foreign investment. Transport, warehouse, and telecoms became the second most popular sector for foreign investors, attracting $3.2 billion. Foreign investors were also mainly putting their money into West Java as the province recorded $4.5 billion in FDI in Jan-June 2023.

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