Singapore once again emerged as Indonesia’s largest foreign investor, contributing S$7.1 billion (Rp 85.4 trillion) in Q3 2024. This marks a decade of dominance by Singapore in Indonesia’s foreign direct investment (FDI) landscape.
Indonesia’s total investment in Q3 2024 reached Rp 431.5 trillion, reflecting a robust 15.3% year-on-year growth. Of this, foreign direct investment (PMA) accounted for Rp 232.7 trillion, or 53.9% of the total. Singapore led the FDI, contributing Rp 85.4 trillion, far surpassing countries like Hong Kong and China. This sustained growth underscores Singapore’s pivotal role in Indonesia’s economic landscape.
Singapore’s position as the top investor in Indonesia has continued for over a decade, according to Indonesia’s Minister of Investment, Rosan Perkasa Roeslani. The country’s investment in Q3 2024 amounted to S$7.1 billion (Rp 85.4 trillion), marking an increase from previous years. “Singapore has doubled its investment in Indonesia compared to four years ago, reflecting steady growth,” Rosan stated at a press conference.
Following Singapore in foreign investment were Hong Kong, contributing S$3.8 billion (Rp 34.18 trillion), China with S$2.5 billion (Rp 29.52 trillion), Malaysia at S$1.3 billion (Rp 15.53 trillion), and the United States at S$1 billion (Rp 12.42 trillion). Rosan clarified that these figures often represent where companies are registered rather than their actual origin, noting that some investments attributed to Malaysia, for instance, come from companies like Korea’s Lotte.
Indonesia’s total investment for 2024 is on course to reach the target of Rp 1,650 trillion, with Rp 1,261 trillion already realized by September. Foreign investment contributed Rp 654.4 trillion, reflecting a 16.95% year-on-year increase, while domestic investment (PMDN) surged by 23% to Rp 607 trillion. A significant portion of these investments was directed outside Java, with Rp 635 trillion channeled to regions beyond the island, bolstering Indonesia’s broader economic development.
Key sectors driving this surge include base metals, transportation, telecommunications, and mining, with the base metal industry alone receiving Rp 178.04 trillion. This surge in investment underscores Indonesia’s increasing attractiveness as a hub for industries like infrastructure, logistics, and manufacturing.
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Foreign investment plays a vital role in Indonesia’s development, and under President Joko Widodo, the government continues to push for inclusive growth, ensuring that regions like Papua benefit from these investments. Efforts are underway to involve local populations in projects such as copper smelting and sugar processing, with a focus on ensuring locals are not merely observers but active participants in their region’s economic growth.
Singapore’s substantial investment in Indonesia underscores the strength of the relationship between the two countries and Singapore’s confidence in Indonesia’s economic future. The robust growth in foreign investments is a key driver of Indonesia’s economic recovery, and with continued momentum, the nation is poised for long-term prosperity.
Singapore continues to lead as the top foreign investor in Indonesia, contributing S$7.1 billion in Q3 2024. The country’s investments, along with those from Hong Kong, China, and others, are driving Indonesia’s strong economic growth, particularly in sectors like base metals and telecommunications.
