Investment Minister Bahlil Lahadalia (Photo: BKPM)
Investment Minister Bahlil Lahadalia (Photo: BKPM)

Manufacturing Sector Plays Key Role in Increasing Investment Realization in Indonesia

English BKPM investment manufacturing
Wahyu Dwi Anggoro • 27 April 2022 15:46
Jakarta: The manufacturing sector still plays a very important role in increasing investment realization and remains a driver of economic growth, The Ministry of Investment / Investment Coordinating Board (BKPM) has said.
The top five sectors contributed to FDI and DDI realization in first quarter 2022 are: Metal Industry, Metal-Based Goods, Non-Machinery and Equipment Industry (IDR 39.7 trillion, 14.0%); Transportation, Warehouse, and Telecommunication (IDR 39.5 trillion, 14.0%); Mining (IDR 35.2 trillion, 12.5%); Housing, Industrial Estate, and Office Building (IDR 24.9 trillion, 8.8%); and Electricity, Gas, and Water Supply (IDR 23.1 trillion, 8.2%). 
Ministry of Investment/BKPM documented the top five locations where FDI and DDI occured are: Special Territory of Jakarta (IDR 40.4 trillion, 14.3%); West Java (IDR 39.5 trillion, 14.0 %); Riau (IDR 23.7 trillion, 8.4%); East Java (IDR 23.6 trillion, 8.4%); and Central Sulawesi (IDR 20.0 trillion, 7.1%).

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The top five country of origin for FDI are: Singapore (US$ 3.6 billion, 34.8%); Hong Kong (US$ 1.5 billion, 15.0%); China (US$ 1.4 billion, 13.2%), Japan (US$ 0.8 billion, 8.0%); and United States Of America (US$ 0.6 billion, 6.1%).
"I was ordered by the President to create inclusive and quality investment, where investment in Java and outside Java arranged in good proportions, the added value of natural and mineral resources was increased, as well as the growth of new economic in the region. For this reason, all units in the Ministry of Investment / BKPM with out of the box efforts in the context of achieving inclusive investment," Minister of Investment/Head of BKPM Bahlil Lahadalia said in a press release on Wednesday.
The realization of investment of outside java in the first quarter of 2022 reached IDR 148.7 trillion. 
It increased by 16.6% to IDR 127.5 trillion compared to fourth quarter of 2021. 
It is indicated by the existence of Riau and Central Sulawesi provinces as part of top five investment locations for FDI as well as DDI and contributed 8.4% and 7.1% to total investment realization. 
The significant growth of investment in outside Jawa for FDI in this quarter is shown by Central Sulawesi which grew the fastest of 12.9% followed by Riau of 9.9% and North Maluku 7.3%.

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