After So Many Years, America Back to Top 5 Investors in Indonesia

TheIndonesia.id - Minister of Investment/ Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia asked investors to invest directly in Indonesia rather than through other countries. According to him, investment licensing in Indonesia has become easier and more transparent.

"Next time, if you can, now you don't need to go through other countries, just go to Indonesia. No more illegal fees anyway, just go ahead. If you can do it directly, why do you have to use another way," he said in an online presentation of investment achievement 2021 in Jakarta, Thursday, January 27, 2022.

Based on Ministry of Investment/ BKPM data, throughout 2021, Singapore will be the biggest investment in Indonesia with a total of 9.4 billion US dollars. Hong Kong followed in second place with US$4.6 billion, then China with US$3.2 billion, the United States with US$2.5 billion, and Japan with US$2.3 billion.

"America is interesting, in the last five years it has never been in the top five, this time it is in. In 2022, I believe it will be nominated in the top five because the investment is big," he said.

Singapore as Hub

Bahlil said that Singapore's position as an investment hub is the reason behind its position as the country with the largest investment. Bahlil believed these investments come from foreign companies from other parts of the world.

"Singapore is the highest, but I'm not sure all of this money is from Singapore. Maybe some Indonesians also have money there. This is a hub, never mind, it's not an open secret anymore. So Singapore is a hub, so a terminal for several countries to enter Indonesia," he explained.

Singapore is also at the top ranking of countries that invest in Indonesia during the fourth quarter of 2021. Singapore was in the first position with a total investment of US$2.1 billion, followed by Hong Kong with US$1.5 billion, the United States US$1.2 billion, China US$900 million, and Japan US$500 million.

Meanwhile, the investment throughout 2021 reached IDR 901.02 trillion, exceeding the target requested by President Jokowi of IDR 900 trillion. In detail, the investment number during January-December 2021 reached 100.1 percent, growing 9 percent compared to the investment number in 2020 of Rp. 826.3 trillion.

Investment realization throughout 2021 succeeded in absorbing 1,207,893 direct workers. The total realized investment consists of foreign investment (PMA) of IDR 454.0 trillion or a growth of 10 percent compared to the achievement in 2020. Meanwhile, domestic investment (PMDN) reached IDR 447.0 trillion or grew 8.1 percent compared to 2020.

"If we can maintain this trend into 2022, God willing, Indonesia will have better economic growth and our per capita income will also shift," he said.