Jakarta Globe is reporting that Investment Minister, Rosan Roeslani, announced on Friday (31/1/25,) that Indonesia attracted IDR 1,714.2 trillion, or approximately USD 105 billion in 2024, with a significant portion of the money coming from international investors. This figure beats former President Jokowi’s goal of IDR 1,650 trillion and represents year-on-year (yoy) growth of 20.8 percent, creating jobs for almost 2.5 million people.
Foreign direct investments (FDI) made up 52.5 percent of what Indonesia had recorded throughout last year, amounting to IDR 900.2 trillion.
The basic metal industry was the most sought-after among foreign investors who had put their money in resource-rich Indonesia that year. FDI in this subsector hit USD 13.6 billion, seconded by the mining subsector which registered USD 5.2 billion from international investors, says Jakarta Globe.
“For the past 10 years, Singapore has always been our top foreign investor. Last year, we recorded USD 20.1 billion in FDI from Singapore in January-December 2024. Hong Kong was our second-largest FDI source with USD 8.2 billion, and then we have China at USD 8.1 billion,” Rosan told a press briefing in Jakarta.
FDI inflows from close neighbor Malaysia reached USD 4.2 billion. The US, which had recently witnessed President Donald Trump’s return to the White House, invested USD 3.7 billion in Indonesia last year.
Jakarta Globe says that Southeast Asia’s largest economy is currently trying to move its commodities up the value chain as part of a massive downstream industry development plan. Indonesia is nudging international manufacturers into setting up their production plants in the country, regardless of the sector: be it mineral mining, agriculture, or even forestry. This way, the country can add value to its commodity exports.
According to Rosan, investors appear to be on board with the plan as data shows downstream industries recorded IDR 407.8 trillion in investments for the entirety of 2024. This is equivalent to 23.8 percent of the total investments that Indonesia saw that year.
About IDR 245.2 trillion of the investments went to mineral smelting industries. Indonesia’s downstream industry development masterplan began with nickel, starting with an export ban on its unprocessed ores in 2020. Data also shows the Indonesian electric vehicle battery ecosystem registered IDR 8.4 trillion in investments in 2024, Jakarta Globe reports.
“We believe that investments in the downstream industry development will continue to rise. It is one of President Prabowo Subianto’s priority programs … We are working on developing the industrialization in other commodities [beyond the existing ones like minerals],” Rosan said.
Source: Jakarta Globe
Stock image by Febri Amar from Pixabay
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