A Positive Outlook from Indonesia Investment Realization Q3 2020


Amidst the ongoing pandemic and the economic recession, Indonesia is still resilient and hopeful to keep on accelerating the investment, both domestically and internationally. It has been reported that there is a positive growth in terms of direct investment in Indonesia which becomes a green light for the economy to move forward. Let’s take a look at the complete review on Indonesia investment realization Q3 2020.

8.9% increase from Q2 2020

The Chairman of the Indonesia Investment Coordinating Board, Bahlil Lahadalia, has reported the data regarding Indonesia investment realization Q3 2020. After suffering a massive blow in the investment realization value during the Q2 2020, Bahlil is delighted to announce that there is an 8.9% increase on the total of Indonesia investment realization Q3 2020, from Rp191.9 trillion to Rp209 trillion.

When accumulated with the investment realization value from Q1 and Q2 2020, BKPM has reached Rp611.6 trillion in investment realization per January to September of 2020. This achievement is deemed as a proof that there is a huge opportunity for Indonesia to bounce back, mainly in domestic direct investment (DDI) and foreign direct investment (FDI).

Contrary to popular belief, Indonesia investment realization Q3 2020 experiences a 1.6% year-on-year increase when compared to the investment realization Q3 2019, which compiled of Rp205.7 trillion worth of investment realization.

Based on the data from BKPM, Bahlil exclaimed his optimism in completing the investment realization target of Rp817.2 trillion in 2020, where currently BKPM has successfully reached 74.8% of the said target. In addition,, Bahlil also expressed his confidence that Indonesia investment realization in the coming periods will keep growing with the aid from the Omnibus Law. BKPM has also reported that there are 153 companies planned to relocate their investment to Indonesia, allowing BKPM to continuously boost Indonesia investment realization.

Domestic Direct Investment (DDI) realization

BKPM reported a 2.2% year-on-year increase in the DDI realization during Q3 2020, from Rp100.7 trillion to Rp102.9 trillion in valuation. Based on the report on Indonesia Investment Realization Q3 2020, there are 5 notable business sectors that have gained the most investment realization in Q3 2020. The first one is the Construction sector which garnered Rp23 trillion worth of investment realization.

Then, followed by the Transportation, Warehouse, and Telecommunication sector that accumulated Rp17.7 trillion. The Housing, Industrial Estate, and Office Building sector came in third position with Rp12.6 trillion. Subsequently, the Electricity, Gas, and Water Supply sector gained Rp11.2 trillion. Lastly, the Chemical and Pharmaceutical Industry sector garnered Rp7.5 trillion worth of investment. Most of the DDI realization are sequentially located in Banten, Riau, West Java, East Kalimantan, and East Java.

Foreign Direct Investment (FDI) realization

Apart from the slight increase in Indonesia investment realization Q3 2020, BKPM has also reported a 1.1% year-on-year increase in the FDI realization during Q3 2020, from Rp105 trillion to Rp106.1 trillion. The FDI realization during the Q3 2020 covers 50.8% of the total investment realization, which makes it on par with the DDI realization.

From the data, we can see that the top sector with the highest FDI realization is the Basic Metal, Metal, and Non-Machinery Industry sector with US$1.6 billion worth of investment realization. The second one is the Transportation, Warehouse, and Telecommunication sector that collected US$1 billion investment realization. Then, in third place is the Electricity, Gas, and Water Supply sector which garnered US$0.9 billion in valuation.

In fourth place, the Housing, Industrial Estate, and Office Building managed to collect US$0.6 billion of investment realization. The fifth sector with the highest FDI realization is the Chemical and Pharmaceutical Industry sector with US$0.6 billion worth of investment realization. These top FDI realization are from 5 project locations: West Java, Jakarta, North Maluku, Banten, and Riau Islands.

The 5 top foreign countries that contributed to the Indonesia investment realization Q3 2020 were Singapore, China, Japan, Hong Kong, and the Netherlands.