Investment target for 2023 achievable despite political year

Cikarang, West Java (ANTARA) - Indonesia's investment target of Rp1,400 trillion (around US$92 billion) for 2023 is achievable despite a political year that is synonymous with a wait-and-see approach, according to Investment Minister Bahlil Lahadalia.

"Even though we are entering a political year, despite the wait-and-see approach, the investment climate in Indonesia is getting better," he stated at the groundbreaking of a US-based snack food factory in Cikarang, West Java, Wednesday.

He noted that this is based on the achievement of investment realization during the first half of 2023, which has reached Rp678.7 trillion, which is 48.5 percent of the target. "I am confident that our investment target will grow, especially in 2023," he emphasized.

Despite the uncertain global economic conditions, the minister remarked that Indonesia's economy still grew by 5.17 percent in the second quarter of 2023 with controlled inflation.

According to Lahadalia, this achievement has resulted in Indonesia being ranked among the countries with the best economic growth in the world, beating the US, Europe, South Korea, and Japan. Furthermore, Indonesia's economic growth is at par with that of India and China. "Therefore, it will be such a loss for the industry that refuses to build their manufacturing in Indonesia," he remarked.

He emphasized that investment in Indonesia was not solely dominated by investors from certain countries. He remarked that the US had entered the top five countries with a high investment value in Indonesia along with Singapore, China, and Hong Kong. "In terms of investment, the United States is now in the top five. It is not true that foreign investment in Indonesia is only dominated by certain countries," he stated.

Lahadalia noted that earlier, investment realization in Indonesia during the first semester of 2023 had reached Rp678.7 trillion, a 16.1-percent increase as compared to the achievements in the previous period, and was able to absorb 849,181 workers.

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During the Jan-June 2023 period, Lahadalia noted that the realization of foreign investment had reached Rp363.3 trillion and the realization of domestic investment had reached Rp315.4 trillion. In addition, Singapore, China, Hong Kong, Japan, and the United States are listed as the top five countries with high investment value in Indonesia during the first semester of 2023. "I am grateful that, despite the political year, we continue to earn the trust of foreign investors and domestic entrepreneurs for our country's development," he stated.