Indonesia Captured Only US$39 Billion of US$240 Billion in Southeast Asian Investment Flows in 2024
Jakarta — Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu has spoken candidly about the enormous opportunity Indonesia has to attract investment. Reflecting on capital flows into Southeast Asia in 2024, Indonesia has yet to capture its optimal share.
Of the US$240 billion (approximately Rp 4,032 trillion at Rp 16,800 per dollar) that flowed into Southeast Asia, Indonesia secured just US$39 billion (Rp 655 trillion), whilst Vietnam received a substantially larger portion of US$156 billion (Rp 2,620 trillion).
"In 2024, of the US$240 billion that entered the Southeast Asian region, Vietnam's share was approximately US$156 billion. We only received around US$39 billion," Todotua explained at the detikcom Indonesia Investment Talk Series in Jakarta on Monday (28/4/2025).
According to him, investment plays a vital role in driving a country's economic growth. Vietnam, for instance, saw its economy surge to 7.04 per cent growth thanks to the massive investment flowing into the country. Indonesia is targeting 8 per cent economic growth within five years, with the investment sector expected to provide impetus towards a target of Rp 13,032 trillion over the five years of President Prabowo Subianto's administration.
"If we look at 2024 data, one of our neighbouring countries, Vietnam, has now reached economic growth of 7.04 per cent, and a significant contribution to that came from the flow of investment entering their country," said Todotua.
Fortunately, Indonesia possesses potential strengths to attract investors. Various critical minerals are stored within the archipelago that can be developed to provide added value to the nation.
"We have mineral natural resources with quite significant reserves, whether we're talking about nickel — we are the world's largest holder of nickel reserves — we have bauxite, tin, copper, gold, and many other variables," he added.
On the other hand, the government will also focus on developing downstreaming across a number of strategic sectors that can be pursued in partnership with investors. Downstreaming of these strategic sectors has the potential to attract up to US$618 billion in investment.
"These downstreaming sectors are varied, as I mentioned earlier. We already have a roadmap for downstreaming covering mineral commodities, coal, oil and gas, plantations, agricultural farming, and fisheries. We have calculated that there is potential of around US$618 billion that we can develop," Todotua concluded.
Of the US$240 billion (approximately Rp 4,032 trillion at Rp 16,800 per dollar) that flowed into Southeast Asia, Indonesia secured just US$39 billion (Rp 655 trillion), whilst Vietnam received a substantially larger portion of US$156 billion (Rp 2,620 trillion).
"In 2024, of the US$240 billion that entered the Southeast Asian region, Vietnam's share was approximately US$156 billion. We only received around US$39 billion," Todotua explained at the detikcom Indonesia Investment Talk Series in Jakarta on Monday (28/4/2025).
According to him, investment plays a vital role in driving a country's economic growth. Vietnam, for instance, saw its economy surge to 7.04 per cent growth thanks to the massive investment flowing into the country. Indonesia is targeting 8 per cent economic growth within five years, with the investment sector expected to provide impetus towards a target of Rp 13,032 trillion over the five years of President Prabowo Subianto's administration.
"If we look at 2024 data, one of our neighbouring countries, Vietnam, has now reached economic growth of 7.04 per cent, and a significant contribution to that came from the flow of investment entering their country," said Todotua.
Fortunately, Indonesia possesses potential strengths to attract investors. Various critical minerals are stored within the archipelago that can be developed to provide added value to the nation.
"We have mineral natural resources with quite significant reserves, whether we're talking about nickel — we are the world's largest holder of nickel reserves — we have bauxite, tin, copper, gold, and many other variables," he added.
On the other hand, the government will also focus on developing downstreaming across a number of strategic sectors that can be pursued in partnership with investors. Downstreaming of these strategic sectors has the potential to attract up to US$618 billion in investment.
"These downstreaming sectors are varied, as I mentioned earlier. We already have a roadmap for downstreaming covering mineral commodities, coal, oil and gas, plantations, agricultural farming, and fisheries. We have calculated that there is potential of around US$618 billion that we can develop," Todotua concluded.