Indonesia’s Q3 foreign direct investment down 8.9% on year, official data shows

[JAKARTA] Foreign direct investment (FDI) into Indonesia hit 212 trillion rupiah (S$16.5 billion) in the third quarter, 8.9 per cent lower in rupiah terms than a year earlier, investment ministry data showed on Friday (Oct 17).

The data excludes investment in the financial and oil and gas sectors.

The rate of decline was the sharpest since the first quarter of 2020. It followed a 7 per cent annual drop in FDI in the second quarter, which the investment ministry blamed on rising geopolitical tensions.

Including domestic sources, South-east Asia’s largest economy saw a total of 491.4 trillion rupiah worth of direct investment over the period, up 13.9 per cent on a yearly basis and creating almost 700,000 jobs, the ministry said.

The biggest beneficiaries of FDI in the July-September period were the base metal, mining, transportation, warehouse and telecommunication industries.

Singapore, Hong Kong and China were the biggest sources of FDI in the third quarter. REUTERS