Indonesia 2Q21 FDI rise 19.6% y/y

  • Foreign direct investment (FDI) into Indonesia surged +19.6% y/y basis in 2Q21 in rupiah terms, the country’s investment ministry said, the highest rise in over five years.
  • Total FDI in 2Q21 stood at IDR116.8tr (USD8.06bn), excluding FDI into banking and the oil and gas sector.
  • The 2Q21 FDI growth was the strongest since 4Q15, according to Refinitiv data.
  • With domestic investment, total direct invest in the second quarter stood at IDR223tr, up 16.2% from 2Q20.
  • However, it was noted rising COVID-19 cases and stricter coronavirus curbs beginning in Jul 21 will likely affect the 3Q21 figures.
  • The ministry aims to attract total direct investment of IDR900tr in 2021, from domestic and foreign sources. In 1H21, 49% of the target had been reached.
  • Investors have made commitments for later in 2021, including a IDR5.2tr investment by U.S. agribusiness giant Cargill Inc expected by Nov 21.

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