Indonesia Aims for 40% Investment from Southeast Asian Countries

TEMPO.CO, Jakarta - The Coordinating Minister for Economic Affairs Airlangga Hartarto targeted 40% of foreign direct investment (FDI) from Southeast Asian countries to enter Indonesia. The highest FDI recorded at present time is US$224.2 billion, a 5.5% increase from US$212.4 billion in 2021.

"At least 40% of the investment must enter Indonesia since the country's economy amounted to 40% of the total economy in ASEAN," he said during the UOB Gateway to ASEAN Conference 2023 with the theme "ASEAN Forging Ahead" in Jakarta today. "Our target is absorbing Rp80 billion [of FDI]."

Additionally, Airlangga is sure that FDI will enter Indonesia despite the global economic slowdown. The reason for the claim is the political stability in the country. "The second one is the 5% maintenance of the economic growth in seven quarters. The inflation could be suppressed to 2.2% from the initial 3% target at the end of the year," he said.

Indonesia has been showing high and inclusive economic growth with a low and controlled inflation rate. During the second trimester, the economic growth of Indonesia increased by 5.17% year-on-year while the inflation rate reached 2.28% by September. Additionally, Indonesia is currently preparing foreign exchange from exports to anticipate the uncertainty of US dollars. 

He also hopes that UOB as one of the first Singaporean Banks to conduct an ASEAN conference in Indonesia could push for foreign investment in Indonesia. UOB is currently holding the UOB Gateway to ASEAN Conference 2023, inviting business leaders, and partners from Indonesia and other Southeast Asian Countries along with their governments.

YOHANES MAHARSO JOHARSOYO

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