General

In the second quarter of 2022, Indonesia attracted foreign direct investment (FDI) of 163.2 trillion rupiah (about 10.89 billion U.S. dollars), a year-on-year increase of 39.7%, the highest growth rate in the past decade.

Indonesia (Indonesia) Investment Minister Bahlil Lahadalia said recently that in the second quarter of 2022, Indonesia attracted foreign direct investment (FDI) of 163.2 trillion rupiah (about 10.89 billion US dollars), A year-on-year increase of 39.7% was the highest in the last decade.

Minister Balil said at a press conference that in the second quarter of this year, Indonesia attracted foreign direct investment funds (excluding investment in the banking and oil and gas industries) at a faster rate than the 31.8% in the first quarter of this year. In the second quarter of this year, the main reason for Indonesia to attract a record high foreign direct investment funds is that downstream mining projects and petrochemical projects have entered the construction stage.

Singapore, China and Japan were Indonesia's largest sources of FDI during this period. According to aggregated data from Eikon Refinitiv, 39.7% was the highest increase in foreign investment in Indonesia on a quarterly basis since 2011.

Minister Balil confirmed that the Indonesian government will continue to focus on the metal processing and the use of renewable energy industries, and reiterated Indonesia's plan to ban bauxite and tin exports to promote investment in domestic processing facilities, citing this as Indonesia's efforts to restructure foreign investment part of the funding structure.

Previously, the Indonesian government's ban on nickel ore exports helped the country attract a lot of foreign investment, mainly from China, for the production of metals and chemicals extracted from nickel ore and materials used in car batteries.