Jakarta, 22nd July 2020 – Indonesia Investment Coordinating Board (BKPM) announce the investment realization data for the second quarter (April – June) 2020 that reach IDR 191.9 trillion and cumulative investment realization data for first semester (January – June) 2020 reached IDR 402.6 trillion.
Chairman of BKPM, Bahlil Lahadalia stated that COVID-19 pandemic has a massive and systematic impact on the global economy, including Indonesia, thus the investment deceleration is projected throughout 2020. Nonetheless, BKPM remain positive on its 2020 investment target which will reach at least IDR 817.2 trillion, or about 92.2% from the initial target of IDR 886.0 trillion.
“This target should be secured if the Government of Indonesia continues to conduct intensive internal consolidation towards finding solutions”, said Bahlil.
Investment realization for the second quarter of 2020 was slowing down as much as 4.3% compared to the same period in 2019 (IDR 200.5 trillion). However, investment realization until this period has contributed 49.3% to the target of 2020 which was just adjusted to IDR 817.2 trillion, and successfully absorbed 263,109 Indonesian workers.
Based on the above achievement, the Domestic Investment (DDI) (IDR94.3 trillion or 49.1%) significantly contributed to the total realization which is able to absorb Indonesian workers as many as 145,311 people or 55.2% of total employment of Indonesian labor. In addition, the data showed that the biggest portion of investment realization came from transportation, warehouse and telecommunications sector (18.8%), and the project location with the highest investment realization was the Special Territory of Jakarta (18.9%)
“Our DDI have been proven to be resilient despite the ongoing coronavirus pandemic since the amount of DDI are shown as almost equal to the amount of its FDI. In addition, lauding this as an outstanding performance, the DDI have created more jobs for Indonesians than its FDI. ” said Bahlil.
During the same period, the realization of Foreign Direct Investment (FDI) was IDR 97.6 trillion or 50.9% of the total investment realization which employ 117,798 Indonesian labor. Furthermore, the biggest FDI realization contributor sector came from the Electricity, Gas and Water (21.6%), and the largest investment realization projects location was in West Java (19.9%). The largest FDI realization came from Singapore country (28.8%).
Most investment realization occurred in Java, which has value of IDR 100.6 trillion or 52.4% of the total investment realization. Meanwhile, investment realization outside of Java value to IDR 91.3 trillion or 47.6% of the total investment realization.
Cumulatively, during the period January – June 2020, Indonesia’s investment realization performance reached IDR 402.6 trillion, consisting of IDR 195.6 trillion Foreign Direct Investment (FDI) and IDR 207.0 trillion Domestic Direct Investment (DDI) realization. That performance succeeding in hiring 566,194 Indonesian labor.
Further elaboration on the investment realization performance in the January – June 2020 period, the biggest value contribution came from IDR 207.0 trillion of Domestic Direct Investment (DDI) or 51.4% of the total investment realization that managed to absorb 296,477 Indonesian labor. Next, the biggest contributor sector came from the transportation, warehouse and telecommunications (26.7%) and the largest investment realization project location was in East Java (18.6%).
Foreign Direct Investment (PMA) contributed for IDR 195.6 trillion or 48.6% of the total investment realization and contributed to labor employment as many as 269,717 people. The biggest contribution to the sector came from the basic metal industry, metal products, non-machinery and equipment (21%), the location of the project with the largest investment realization is West Java (16.7%) and the largest FDI country is Singapore (34.4%).
Regarding the investment pattern distribution, the dominant contribution came from Java Island, which reached IDR 208.9 trillion or 51.9% from its total, while investment realization from outside of Java was IDR 193.7 trillion or 48.1% from its total.
Progress of Investment Realization from 2015 – June 2020: By Quarterly