Investment and economic condition in Indonesia
JI-Jakarta. The government announced Friday that Indonesia had amassed IDR328.9 trillion ($22.4 billion) in investment in the first quarter of 2023. Indonesia seeks to attract investments worth IDR1,400 trillion throughout this year.
What Indonesia had achieved so far showed that the country is now at 23.5 percent of its 2023 target, according to Investment Minister Bahlil Lahadalia.
The investment throughout the first quarter created jobs for 384,892 people. Foreign direct investment (FDI) accounted for 53.8 percent of the total investment over the same period, amounting to IDR177 trillion.
Data provided by the Investment Coordinating Board (BKPM), and Investment Ministry, showed that the investment realization in the West Java province for the first quarter of 2023 is the highest on a national scale, amounting to a total of Rp50 trillion. The province is followed subsequently by Jakarta, East Java, Central Sulawesi, and Banten.
Moreover, West Java also logged the highest domestic investments with Rp21.9 trillion followed by Jakarta, East Java, East Kalimantan, and Riau.
In terms of the Foreign Direct Investment (FDI) realization, Central Sulawesi Province recorded the highest FDI achievement, which amounted to US$ 1.9 billion, followed by West Java, Jakarta, Banten and Riau.
President Joko “Jokowi” Widodo said on May Day that the government’s endeavor to woo investors into the country was to fuel job creation, as recent statistics showed that the investment amassed in the first quarter of 2023 has created jobs for 384,892 Indonesians.
“The government is trying to attract investment both from home and abroad in an effort to spur job opportunities,” Jokowi said in a recorded statement commemorating the 2023 Labor Day. “We also wish to lower the unemployment rate and enhance the workers’ welfare [by attracting investment],” he said.
Indonesia’s economy is showing resilience in a turbulent global environment as first-quarter growth came in slightly higher than many had expected.
As Statistics Indonesia (BPS) announced on Friday, the country’s gross domestic product (GDP) was up 5.03 percent year-on-year (yoy) in the January-through-March period, marking a marginal acceleration from the 5.01 percent annual gain registered in the preceding quarter.
However, economic output looked less impressive from a quarterly perspective, as the GDP figure dropped 0.92 percent quarter-to-quarter (qtq). This marks a slowdown from quarterly gains of 0.36 percent in the fourth quarter of last year and 1.83 percent before that.
Indonesia’s economic growth kept pace in the first quarter of the year, official data showed yesterday, ahead of an expected slowdown that analysts said would be triggered by lagging exports and high interest rates.
Southeast Asia’s largest economy expanded 5.03 per cent on-year in the period running from January through March, slightly up from 5.01 in the previous three months, Statistics Indonesia said. The continued growth was driven by household spending, metal and mineral exports, and returning tourists.