Indonesia targets 33% jump in 2022 investment by tapping resource processing

General view of the main road in the business district After the break-up of Indonesia, a two-week emergency period begins to prevent the spread of the virus (COVID-19) in Jakarta, Indonesia, March 24, 2020. REUTERS / Willy Kurniawan

JAKARTA, Jan. 27 (Reuters) – Indonesia aims to boost total investment this year by a third, bolstered by investment flows to its resource-processing sector, a cabinet minister said on Thursday, after reporting a 10% increase in foreign direct investment (FDI)% in 2021.

The largest economy in Southeast Asia wants to attract investment of 1,200 trillion rupees ($ 83.43 billion) this year, from domestic and foreign sources, compared to 901.02 trillion rupees by 2021, Minister of Investment Hillel said to Daliya at an online press conference.

Last year, Indonesia recorded 454 trillion rupees of FDI, up 10% from 2020 and accounting for more than half of total investment. The data do not include investments in banking and the oil and gas sectors.

“Focus on investment priority in 2022, first we must address our president’s big vision, which is transformation and downsizing (of natural resources),” Investment Minister Hillel said to Daliya at a news conference.

The investment in this area this year included a $ 2.3 billion coal gasification plant by state miner Bukit Asam (PTBA.JK) and electric vehicle battery projects by South Korea’s LG Group and China’s Contemporary Amperex Technology (CATL). read more

“This year, several (investors) have approved to build an industry in northern Clementine, which will be a large alumina production center and will also include petrochemicals,” Hillel said. read more

The minister also said he would push Foxcon (2317.TW) from Taiwan to realize an Indonesian investment planned to develop electric cars. read more

Indonesia, the world’s largest nickel producer, has pushed to develop the EV industry as part of an effort to squeeze more value out of its ore reserves. It banned the export of nickel ores in 2020.

President Joko Widodo said he wanted the resource-rich country to stop exporting unprocessed bauxite, copper, tin and gold in its next step to attract investment.

The biggest gainer from the FDI last year was the basic metal sector followed by mining and transportation, storage and telecommunications.

Singapore was the largest source of FDI, followed by Hong Kong, China, the United States and Japan.

In the fourth quarter, FDI rose 10.1% year-on-year, reaching 122.3 trillion rupees

($ 1 = 14,383,0000 rupees)

Report by Gayatri Suroyo and Brandt Christina Monte; Edited by Martin Petty and Ed Davis

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