Government States Japanese Investment Interest in Indonesia Remains High Amid Global Turmoil

Tokyo, Idola 92.6 FM—Minister of Investment and Downstreaming Rosan Roeslani stated that Japanese investment interest in Indonesia remains high even as the world faces global geopolitical and geo-economic turmoil. This is reflected in the signing of economic cooperation agreements worth USD 23.1 billion at the Indonesia-Japan Business Forum in Tokyo on Monday (30/3).

Rosan said that several new investment commitments from the Japanese government and businesses demonstrate a high level of confidence in Indonesia.

“Despite the geopolitical issues in the world, international confidence, particularly from Japan, remains strong, and they are committed to carrying out investments in Indonesia going forward,” Rosan explained, in a press release from the Indonesian Government’s Communication Agency (Bakom) RI.

He added that these commitments also affirm Japan’s position as one of the five countries with the largest contributions to the realisation of Foreign Direct Investment (FDI) in Indonesia. Based on data from the Ministry of Investment and Downstreaming, Japanese FDI realisation was recorded at USD 3.1 billion throughout 2023, making it the fifth-largest FDI contributor in Indonesia last year.

“So this proves that international confidence, in this case from Japan, both from the Japanese government and Japanese businesses, in Indonesia remains strong,” he added.

Furthermore, Rosan detailed the USD 23.1 billion economic cooperation. According to him, the majority of the investment value, namely USD 20.9 billion, comes from the cooperation between PT Pertamina (Persero) and the Japanese oil and gas company INPEX in the development of the Abadi Gas Field in the Masela Block.

In addition, there are several other investment agreements, including cooperation between SMBC Aviation Capital and Danantara worth around USD 800 million. Pegadaian also received funding from Sumitomo Mitsui Banking Corporation amounting to Rp5 trillion (approximately USD 300 million) to support financial inclusion and the development of the gold ecosystem.

Rosan also mentioned a strategic cooperation in the beauty and aesthetics sector between Japanese company 2Way World and Indonesian partners worth USD 500 million. In addition, investments are flowing into several geothermal projects.

“Indeed, for renewable new energy, Japan has a very strong appetite,” he concluded.