Indonesia's Q1 FDI hikes over 20% (Photo: Bloomberg)Jakarta (VNA) - Indonesia recorded a 20.2% increase annually in foreign direct investment(FDI) in the first quarter (Q1) of this year, with the basemetal industry the biggest recipient amid efforts to boost investment inprocessed minerals.
According to data from the Indonesia’s Ministry ofInvestment, the first quarter FDI, which excludes investment in the banking andoil and gas sectors, was worth 177 trillion IDR (11.96 billion USD), up 43.3% comparedto the last quarter of 2022.
Investment Minister Bahlil Lahadalia said that FDI in the manufacturing sector, especially the metal industry, in Q1 rankedfirst, which showed the government policy to give added value on natural resourceshas had a positive impact.
Indonesiais due to ban the export of raw minerals like copper and bauxite from June as partof efforts to attract investment into its metals processing industry and boostthe value of its exports.
Singapore,China’s Hong Kong, and China provided the largest share of the FDI in the firstquarter with investment of 4.3 billion USD, 1.5 billion USD and 1.2 billion USD,respectively, according to the ministry’s data.
At a newsconference, Bahlil said challenges to achieve the investment target included a global economic slowdown and ensuring political stability aheadof an election next year, when Indonesia will choose a new president andlegislators.
He also said Indonesia will continue to focus on drawinginvestment in the next three quarters into processing industries, includingnatural resources, part of its goal to be among the world's top five countriesin terms of gross domestic product./.
