Indonesia’s investment report highlights sectors ripe for foreign investment, such as local smelters for nickel reserves and becoming a global producer for electric vehicle batteries. In H1 2023, foreign investment reached $23 billion and domestic investments reached $20.4 billion. In 2022, foreign investment totaled $43 billion, with notable sectors including processed nickel exports and electric vehicle batteries. Indonesia aims to become one of the top three global producers for EV batteries by 2027.
Indonesia’s Investment Report Highlights Sectors Ripe for Foreign Investment
Indonesia’s investment report for the first half of 2023 emphasizes sectors that offer promising opportunities for foreign investment. One notable sector is the development of local smelters for nickel reserves. With approximately 22 million tons of nickel reserves, Indonesia’s government is leveraging these resources to attract investments in smelter development. In 2022, the export value of processed nickel contributed significantly to government revenues, reaching US$30 billion. This represents a substantial increase from just US$1 billion in 2015.
Indonesia Aims to Become a Global Producer for Electric Vehicle Batteries
Another standout sector in Indonesia’s investment report is the country’s ambition to become a global producer for electric vehicle (EV) batteries. As the largest nickel reserve holder, Indonesia recognizes the importance of nickel in the production of EV batteries. By targeting to become one of the top three global producers for EV batteries by 2027, Indonesia aims to capitalize on the growing demand for electric vehicles worldwide. This presents an attractive opportunity for foreign investors looking to tap into the EV market.
Indonesia’s Impressive Foreign Investment Performance in 2022
In 2022, Indonesia recorded a breakthrough in foreign investment, with an estimated US$43 billion, marking a 44 percent increase from the previous year. This achievement is the highest in Indonesia’s history and demonstrates the country’s attractiveness to international investors. When combined with domestic investments, the total investment in Indonesia amounted to US$80 billion, representing a 34 percent increase from 2021. With a stable investment climate and numerous sectors ripe for growth, Indonesia continues to position itself as an attractive destination for foreign capital infusion and business development.
Source : Investing in Indonesia: The 2023 Mid-Year Investment Report