Amidst the pandemic that has created negative impacts on the economic situation and made millions of people become unemployed, it is no wonder that investment also suffers tremendously. People are embracing the worst possible outcome, considering the decline in the investment rate during the pandemic.
On the contrary, there are increases in several sectors which is much appreciated. Here are the 10 sectors with the biggest investment realization in Indonesia and 10 countries with the biggest investment realization in the first quarter of 2020.
A surge in domestic investment
According to the data gathered by the Indonesia Investment Coordinating Board (BPKM) in the first quarter of 2020, Indonesia’s investment realization reached Rp201.7 trillion, an 8% increase when compared to last year’s period, which amassed the total of Rp195.1 trillion.
In comparison with the data in 2019, the domestic investment growth in the first quarter of 2020 experienced 29.3%, from Rp87.2 trillion in the first quarter of 2019 to Rp112.7 trillion. Meanwhile, the foreign investment in the first quarter of 2020 had a 9.2% decline when compared to the first quarter of 2019, from Rp107.9 trillion to Rp98 trillion.
10 biggest investment sectors
Surely you are wondering which 10 sectors impacted the investment realization in the first quarter of 2020. Here are the 10 sectors with the biggest investment realization in Indonesia during the first quarter of 2020.
Domestic Direct Investment;
- Transportation, warehouse, and telecommunication sector in the first position, with Rp37.6 trillion investment for 671 projects.
- Construction sector with Rp14.1 trillion investment for 802 projects.
- Food crops, plantation, and livestock sector with 843 projects and Rp10.3 trillion investments.
- Housing, industrial area, and office building sector with 755 projects and the total investment of Rp9.1 trillion.
- The food industry sector has 1,129 finished projects, amassing a total investment of Rp7.3 trillion.
- Electricity, gas, and water supply sectors managed to collect a high investment rate of Rp5.5 trillion for 380 projects
- The mining sector has 321 projects with an investment rate of Rp5.3 trillion.
- Trade and reparation sector, handling a massive number of 3,810 projects and Rp3.9 trillion worth of investment.
- Other services sector with 1,581 projects and the total investment of Rp3,7 trillion.
- Non-metallic mineral industry sector which has generated Rp2.6 trillion worth of investment for 158 projects.
Foreign Direct Investment;
- Metal, except machinery and equipment Industry sector reaching the first place with the total investment of US$1.5 billion for 323 projects.
- Electricity, gas, and water supply sector with US$868.8 million investment for 220 projects.
- The transportation, warehouse, and telecommunication sector finishing 346 projects and US$806.9 million worth of investment.
- Housing, industrial area, and office building sector is worth US$602.9 million for 490 projects.
- Chemical and pharmaceutical industry sector with 508 projects, generating US$569.4 million.
- Mining sector with 310 projects costing US$482.7 million.
- The food crops, plantation, and livestock sector with 351 projects worthy of US$478.8 million.
- The food industry sector stands with 743 projects and a total investment of US$298.4 million. Hotel and restaurant sector with plentiful projects, specifically 1,363 projects worthy of US$220.3 million.
- The last sector is machinery, electronic, medical instrument, precision, optical, and watch industry which generate US$127.1 million for 391 projects.
10 countries with the biggest investment realization in Indonesia - Q1 2020
Here is the list of top 10 countries with the biggest investment realization in Indonesia during the first quarter of 2020.
- Singapore, with a total of 3,006 projects and US$2.7 million worth of investment.
- China, with 650 projects worthy of US$1.2 million investment.
- Hongkong, amassing 554 projects and generating US$634.1 million worth of investment.
- Japan, with 1,519 projects worthy of US$604.2 million investment.
- Malaysia, with 800 projects for the total investment of US$480 million.
- Netherlands, with a total of 509 projects and US$197.6 investment.
- British Virgin Island, with 618 projects for US$176.2 million investment.
- South Korea, with 1,048 projects worthy of US$130.4 million investment.
- The United States of America, with 299 projects and generating a total investment of US$114.1 million.
- Australia, with a total of 321 projects and US$86 million investment.