Affected by Covid-19, Investment Realization of Second Quarter Down 4.3%

JAKARTA. Corona Virus Disease 2019 (Covid-19) pandemic has given negative impact on investment development in Indonesia. It can be seen from the investment realization value in the second quarter recorded by Indonesia Investment Coordinating Board (BKPM) of only IDR 191.9 trillion.
This figure decreased by 4.3% when compared to the realization in the second quarter of 2019 and fell 8.9% to the realization of investment in the first quarter of 2002, which was recorded at IDR 120.7 trillion.

The realization of investment in the second quarter consisted of Domestic Direct Investment (PMDN), which amounted to IDR 94.3 trillion or 49.1%. This amount dropped 16.4% compared to quarter I 2020 and dropped 1.4% compared to the same period in 2019. While the value of the realization of Foreign Direct Investment (PMA) was recorded at IDR 97.6 trillion, down 0.4% from the first quarter of 2020 and down 6.9% from the realization of the second quarter of 2019.

Chairman of BKPM Bahlil Lahadalia revealed that the achievement in this second quarter were not in line with his expectations. BKPM is targeting investment realization in the second quarter to be above IDR 200 trillion. While the investment realization target in 2020 is IDR 817.2 trillion. "This achievement is not the result that we planned, but because Covid-19's condition is burdensome to us," Bahlil said, Wednesday (7/22) in his presentation.

Unlike the second quarter, the realization of investment figures during the first semester or the accumulation of the first quarter and second quarter still showed a positive growth of 1.8% compared to the first semester of 2019 to IDR 402.6 trillion. This figure consists of realization of Domestic Direct Investment in the amount of IDR 207 trillion and Foreign Direct Investment in the amount of  IDR 195.6 trillion, or each grew by 13.2% and 8.1% compared to the first semester of 2019.

When viewed from the country of origin of the Foreign Direct Investment (FDI), Singapore still dominates with an investment value of USD 4.7 billion, growing 36.7% compared to the first semester of 2019. Other countries with the largest investment value are China with a value of USD 2.4 billion, Hong Kong with USD 1.8 billion, Japan with a value of USD 1.2 billion and Malaysia with an investment of USD 0.8 billion.

However, BKPM assesses that throughout the Covid-19 pandemic, it will not only prioritize FDI, but will also pay attention to investments in the Micro, Small and Medium Enterprises (MSME) group and increase Domestic Direct investment.