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)

                   2014
  Q1   Q2   Q3   Q4
Domestic Direct Investment  34.6  38.2  41.6  41.7
Foreign Direct Investment  72.0  78.0  78.3  78.7
Total Investment
106.6  116.2 119.9 120.4

 

                   2011
               2012                2013
 Q1  Q2  Q3  Q4  Q1  Q2  Q3  Q4  Q1  Q2   Q3   Q4
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
Total Investment
53.6  62.0 65.5 70.2 71.2 76.9 81.8 83.3 93.0 99.8 100.5 105.3

Source: Indonesia Investment Coordinating Board (BKPM)

Further Reading:

Investment Realization in Indonesia in Q4-2014 and Full-Year 2014
BKPM Press Release on Investment in 2014

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