Indonesia’s FDI increased by nearly 40% in Q2/22, benefiting downstream industry development

Indonesia’s investment minister said Tuesday (July 20) that foreign direct investment in Indonesia rose 39.7% year-on-year to 163.2 trillion rupiahs in the second quarter. This was the largest increase in a decade.

Foreign direct investment, which excludes bank investment as well as oil and gas, continues to rise after increasing 31.8% in 1Q22.

This increase in FDI in the second quarter was largely due to the development of downstream industries in mining and petrochemicals, which entered the construction phase.

Singapore, China, and Japan were the top sources of foreign investment in Indonesia in the second quarter, registering a 39.7% increase – the largest increase in the Eikon Refinitiv data collection since 2011.

The Indonesian government plans to ban the export of bauxite and tin in order to encourage investment in these mineral processing operations in the country as part of the reform of foreign investment in Indonesia.

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