The Indonesia Investment Coordinating Board (BKPM) announced that foreign and domestic direct investment realization in Indonesia totalled IDR 463.1 trillion (USD $37 billion) in 2014, a 16.2 percent increase from the previous year and exceeding the target that was set previously. This is a positive result as 2014 was expected to be a rather bleak year in terms of direct investment amid political uncertainties triggered by the (fragmented results) of the country’s legislative and presidential elections.
Foreign Direct Investment in Indonesia in 2014
The most popular sectors for foreign direct investment (FDI) in 2014 were Indonesia’s mining (USD $4.7 billion), food industry (USD $3.1 billion), transportation, warehouse and telecommunication (USD $3.0 billion), metal, machinery and electronic industry (USD $2.5 billion), and chemical and pharmaceutical industry (USD $2.3 billion) sectors.
In terms of geography, FDI in 2014 was concentrated on Indonesia’s most populous island of Java, namely West Java (USD $6.6 billion), Jakarta (USD $4.5 billion), Banten (USD $2.0 billion), and East Java (USD $1.8 billion). The largest target for FDI besides Java was the province of East Kalimantan (USD $2.1 billion).
Singapore was the largest foreign direct investor in 2014, investing a total of USD $5.8 billion in Indonesia, followed by Japan (USD $2.7 billion), Malaysia (USD $1.8 billion), the Netherlands (USD $1.7 billion), and the United Kingdom (USD $1.6 billion).
BKPM Head Franky Sibarani said that the BKPM targets a 14 percent (year-on-year) increase in total direct investment in 2015. This target - IDR 519.5 trillion - involves domestic investment of IDR 175.8 trillion and FDI of IDR 343.7 trillion.
Foreign and Domestic Investment in Indonesia (in IDR trillion)
|Domestic Direct Investment||34.6||38.2||41.6||41.7|
|Foreign Direct Investment||72.0||78.0||78.3||78.7|
|Domestic Direct Investment||14.1||18.9||19.0||24.0||19.7||20.8||25.2||27.5||27.5||33.1||33.5||34.1|
|Foreign Direct Investment||39.5||43.1||46.5||46.2||51.5||56.1||56.6||65.5||65.5||66.7||67.0||71.2|
Source: Indonesia Investment Coordinating Board (BKPM)