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Selasa, 15 Oktober 2024

Rosan: Investment Realization Continues to Grow, Indonesia Consistently Implements Downstream Agenda

Jakarta, October 15, 2024 – In line with the World Bank’s projection that Indonesia’s economic growth will be in the range of 5.0% in 2024, investment realization is showing a positive trend. This can be seen in the investment realization report for the third quarter (July–September) of 2024 released by the Ministry of Investment/Investment Coordinating Board (BKPM) today, Tuesday (15/10).

Minister of Investment/Chair of the BKPM Rosan P. Roeslani emphasized that the performance of investment realization in the third quarter of 2024 was greatly influenced by the downstream policy that the government has consistently implemented. Downstreaming, he said, is the key to investment growth because it can increase value added and job creation.


“Downstreaming plays an important role in increasing investment in Indonesia. Most importantly, downstreaming allows us to have products with value added and create jobs,” Rosan said at a press conference regarding the Investment Realization in the Third Quarter of 2024 and Investment Achievements in the 10 Years of Jokowi’s Administration in Jakarta.


Throughout the third quarter of 2024, the Ministry of Investment/BKPM recorded investment realization of Rp 431.48 trillion or an increase of 15.24% compared to the same period the previous year, with the downstream sector contributing Rp 91.51 trillion or 21.2% of the total realization for the quarter. This realization not only contributed to the 26.15% attainment of the total investment target for 2024, but also became a place for the absorption of approximately 650,172 Indonesian workers.


“We see that this (downstream) figure is quite consistent, both quarterly, annually, and five-yearly, always above 20 percent. This shows that the downstream policy implemented by President Joko Widodo has produced a very positive impact,” said Rosan.


The realization of Domestic Direct Investment (PMDN) in the third quarter increased by 11.62% compared to the previous year, from Rp 178.20 trillion to Rp 198.83 trillion. Meanwhile, Foreign Direct Investment (PMA) increased by 18.55%, from Rp 196.20 trillion to Rp 232.65 trillion, with PMA’s contribution reaching 53.92% of the total investment. The top five PMA countries are Singapore (US$5.50 billion), Hong Kong (US$2.24 billion), China (US$1.86 billion), Malaysia (US$0.99 billion), and the United States (US$0.84 billion).


Based on business sectors, the largest investment came from the Transportation, Warehouse and Telecommunications sector (Rp 58.04 trillion), followed by the Base Metal Industry (Rp 55.87 trillion), Mining (Rp 44.64 trillion), Chemical and Pharmaceutical Industry (Rp 31.61 trillion), and Food Industry (Rp 31.30 trillion).



The period of January-September 2024

In line with the strong achievement in the third quarter, cumulative investment realization during the period of January–September 2024 also showed positive performance. This achievement is an indication that Indonesia is on the right track to achieve the investment target by the end of 2024. With the realization that has been achieved in the first nine months, optimism that the target can be exceeded gets stronger.


“The realization has reached Rp 1.261 trillion, an increase of almost 20% yoy. The year-end target of Rp 1.650 trillion has been achieved by 76.4%. In fact, if we’re talking about the renstra (Strategic Plan) target, the realization has exceeded it,” said Rosan.


Similar to the third quarter, the period of January-September 2024 was also influenced by the downstream sector which contributed Rp 272.91 trillion or 21.6% of the total investment. During that period, investment outside Java reached Rp 635 trillion (50.34%), an increase of 16.34% compared to Rp 545.81 trillion in the same period in 2023.



10 Years Investment Achievements

If we look at the broader picture, investment realization during the 10 years of President Jokowi’s administration reached Rp 9,117.4 trillion, with the absorption of 13,836,775 workers. This figure exceeds the target of the Ministry of Investment/BKPM’s Strategic Plan (Renstra) since 2021, showing the success of the implemented policies in creating a conducive investment climate.


“In the last 10 years, economic and political stability has increased investors’ confidence to invest in Indonesia. Investment is a long-term commitment, so stability is very important,” said Rosan.


The manufacturing sector also continues to be an important pillar in economic growth. Over the past decade, this sector has experienced significant development. This shows the manufacturing sector’s strategic role as a driving force of the national economy. In the future, the focus will continue to be directed at strengthening this sector so that it will have greater contribution to investment and job creation.


“Manufacturing growth has reached 15.5% over the past 10 years. This sector has quite high growth and needs to be continually pushed forward,” Rosan concluded.

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