The Netherlands has become the third-largest source of foreign investment for Indonesia in the second quarter of the year.
Investment Minister Bahlil Lahadalia said that the Netherlands had materialised investments worth $1.1 billion. This amount is equivalent to 13.8 percent of Indonesia’s overall foreign direct investment (FDI) flow of the quarter.
“This is interesting. The Netherlands has surpassed Japan as the third-largest foreign investor,” Bahlil said in a video conference in Jakarta.
The current Dutch investments demonstrate a dramatic rise from just $176.7 million in the previous quarter. In Q1, the Netherlands came in ninth among Indonesia’s main investment partners. This information is according to data from the Investment Coordinating Board (BKPM). Minister Bahlil heads BKPM.
Singapore still tops foreign direct investments
The wealthy city-state of Singapore remains Indonesia’s most significant investment partner with $2.1 billion. This amount represents 26.4 percent of overall Q2 FDI figures in Indonesia, said Bahlil.
Hong Kong comes in second with $1.4 billion of investment or 18.1 percent.
Japan and mainland China are still among Indonesia’s five most prominent investors. They have a share of 9 percent and 8 percent, respectively.
According to BKPM, most of FDI flows went to the following industries. Firstly, metal industry, secondly mining, thirdly, transportation. These were followed by telecommunication, utilities, housing, industrial estate and office building respectively.
Indonesia has received $15.65 billion in FDI throughout the first half of the year, directed at more than 19,000 projects across the archipelago.
The top ten investment partners in the period include Singapore ($4.7b), Hong Kong ($2.3b), China ($1.7), the Netherlands ($1.3b), South Korea ($1.1b), Japan ($1b), the United States ($799m), Malaysia ($707m), Switzerland ($497m) and Thailand ($319m).
Despite the Covid-19 pandemic, FDI realisation in Indonesia had shown a steady rise since the second quarter of 2020, when it was valued at $6.8 billion.
The latest quarterly FDI of $8 billion is on track to surpass an equaling record of $8.3 billion in the third and fourth quarters of 2017.