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Jumat, 31 Januari 2025

Investment Realization Reaches IDR 1,714 Trillion, Absorbs 2.4 Million Workers

Jakarta, January 31, 2025–Throughout 2024, Indonesia's investment realization successfully reached IDR 1,714.2 trillion, growing by 20.8% compared to the previous year and exceeding the government's target of IDR 1,650 trillion by 103.9%. This achievement also absorbed 2,456,130 workers. This strong performance signals that investors continue to place significant trust in Indonesia's investment climate, marking an optimistic start for the new administration under President Prabowo Subianto and Vice President Gibran Rakabuming Raka.

The Minister of Investment and Downstream Industry/Chairman of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani, stated that the composition of investment realization in 2024 was still dominated by Foreign Direct Investment (FDI) at IDR 900.2 trillion (52.5%), followed by Domestic Investment at IDR 814 trillion (47.5%). The absorption of Indonesian workers (TKI) showed a significant increase of 34.7% from the previous year, reaching 2,456,130 people.


"Investment realization outside Java Island remained higher at IDR 895.4 trillion (52.2%), while realization in Java Island amounted to IDR 818.8 trillion (47.8%). This indicates that the government's policies and development efforts to promote equitable growth have been positively received by the business community," he said during the 2024 Investment Realization Press Conference at the Ministry of Investment and Downstream Industries/BKPM office in Jakarta on Friday (31/01).


The investment realization from January to December 2024 was also supported by the downstream sector's contribution of IDR 407.8 trillion, or 23.8% of the total investment in 2024. The five key sectors include the mineral sector valued at IDR 245.2 trillion, consisting of nickel (IDR 153.2 trillion), bauxite (IDR 21.8 trillion), copper (IDR 68.5 trillion), and tin (IDR 1.6 trillion); the agricultural sector from crude palm oil/oleochemical industries valued at IDR 67.1 trillion; the forestry sector from pulp & paper industries valued at IDR 64.0 trillion; the oil and gas sector from petrochemical industries valued at IDR 23.1 trillion; and the electric vehicle ecosystem from electric vehicle battery manufacturing industries valued at IDR 8.4 trillion.


"Investor interest continues to grow across various sectors, not just concentrated in the top five sectors we highlighted. In the future, downstream activities from other fields will emerge, and we are confident that the range of commodities and sectors will expand," said Rosan.


In addition to the annual investment realization, the former Indonesian Ambassador to the United States also highlighted the investment realization in the fourth quarter (October-December) of 2024, which similarly showed growth. Investment realization during this period reached IDR 452.8 trillion, an increase of 4.9% compared to the previous quarter and a surge of 23.8% compared to the same period in 2023. The main sectors driving investment in Q4 2024 included basic metal, metal goods, non-machinery, and equipment industries (IDR 60.4 trillion); mining (IDR 52.2 trillion); transportation, warehousing, and telecommunications (IDR 42.7 trillion); food industry (IDR 34.5 trillion); and other services (IDR 34.2 trillion).


Indonesia's 14% Share of ASEAN FDI, Minister Rosan: Room to Grow Remains Significant

On this occasion, Minister Rosan also emphasized that Indonesia still has significant room for growth, as evidenced by the large FDI inflows into ASEAN, which reached USD 240 billion in 2024. "Economically, we contribute 40% to ASEAN's economy, but in terms of FDI, we only account for 14-15%. Therefore, we are confident that the room to grow remains substantial and significant," said Rosan.


Enhancing domestic value-added through downstream industries and regulatory reforms to foster a conducive investment climate are strategic steps to achieve the government's 2025 investment target of IDR 1,905.6 trillion.


"If we look at the year-on-year investment realization, the increase is quite significant. Compared to the investment realization in 2020, this represents an increase of over 100%. Job creation has also been substantial. We believe that the contribution of incoming investments to job creation will continue to grow in the future, in line with our targets and those set by Bappenas," concluded Rosan. (*)


For further information, please contact:

Sri Moertiningroem

Head of the Bureau of Protocol and Public Relations

Ministry of Investment and Downstream Industries/BKPM

Email: humas@bkpm.go.id

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