Head of National Investment Coordinating Board, Bahlil Lahadalia, announced foreign direct investment (FDI) dropped by 2.43 percent from a year ago Rp423.1 trillion to Rp412.8 trillion while the domestic direct investment reached more than 50 percent of the total investment - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Head of National Investment Coordinating Board, Bahlil Lahadalia, announced foreign direct investment (FDI) dropped by 2.43 percent in 2020 from a year ago Rp423.1 trillion to Rp412.8 trillion (US$29.48 billion) while the domestic direct investment (DDI) Rp413.5 trillion or more than 50 percent of the total investment. Singapore still became major investor during last year.

“In the 4th quarter, vaccinations had started and the passage of the omnibus law gave foreign investors confidence,” he told the media in a virtual conference today.

Lahaladia also reported, total investment realization recorded Rp826.3 trillion or up 2.1 percent compared to last year Rp809.6 trillion. In 2020, the agency targeting the realization investment during last year of Rp817.2 trillion.

In the fourth quarter of 2020, he said, total investment recorded worth of Rp214.17 trillion, rose 3.1 percent compared to last year and 2.16 percent compared to the previous quarter (QoQ). Total FDI also jumped 5.5 percent to Rp111.1 trillion and DDI amounted to Rp103.6 trillion.

Based on country, Singapore invested $2.6 billion, China $1.3 billion, Hong Kong $1.1 billion, South Korea $700 million, and Japan $500 billion. The spread of the investment still controlled by Java Island but more wider to East Indonesia.

To support this year targets Rp8558.5 trillion, Indonesian government plans to revises the negative list and more open to the foreign investors. Lahadalia optimistic with the omnibus law and various policies the targets could be achieved.

As an example, the country prepared various incentives for mining, oil and gas players to support the downstream projects and to boost the national productions. Indonesia is targeting to produces one million barrels per day (bpd) of oil and gas and around 12 billion cubic feet of gas per day or 3.2 million barrels of oil equivalent per day by 2030.

“We already have 153 companies in our pipelines and ready to enter in 2021. We will also have the largest battery industry in the world,” he concluded.

US$1: Rp14,000

Written by Editorial Staff, Email: theinsiderstories@gmail.com