Makassar Investment Value Drops 35 Per Cent in 2024
The investment value of Makassar City throughout 2024 experienced a decline. Based on investment realisation data released by the Investment Coordinating Board (BKPM), Makassar's investment value fell by 35.03 per cent.
The total investment value for Makassar City in the January–December 2024 period reached only Rp3.82 trillion, compared with Rp5.89 trillion in 2023.
In detail, Foreign Direct Investment (PMA) declined by 17.04 per cent, or a reduction of Rp111.27 billion, from Rp652.83 billion to Rp541.56 billion. Domestic Investment (PMDN) also fell by 37.27 per cent, or a decrease of Rp1.95 trillion, from Rp5.23 trillion to Rp3.28 trillion.
The Head of Makassar City's Investment and One-Stop Integrated Services Agency (PM PTSP), Helmy Budiman, stated that investment activity in Makassar in 2024 was dominated by the housing, industrial estates and urban development sector at Rp864.158 billion. This was followed by transportation, warehousing and telecommunications at Rp749.618 billion, trade and repair at Rp652.695 billion, other services at Rp514.691 billion, and mining at Rp282.814 billion.
"Overall, these sectors also experienced a decline in investment value, except for mining, which rose from Rp74 billion to more than Rp282 billion," Helmy Budiman explained.
Despite the decline, Makassar City remains the largest contributing area in South Sulawesi, accounting for 27.27 per cent of the province's investment. "Of the more than Rp14 trillion in investment in South Sulawesi, Makassar contributed Rp3.8 trillion, while the total for other regencies and cities was more than Rp10.207 trillion," he said.
Helmy explained that the decline in investment value was influenced by macroeconomic factors, such as the presidential election, regional head elections, and global events including the Ukraine–Russia war and conflicts in the Middle East. "All of these have a macroeconomic impact, because investors observe the macroeconomic conditions first before looking at the micro level. Unfortunately, Makassar was not in an advantageous position," he said.
The total investment value for Makassar City in the January–December 2024 period reached only Rp3.82 trillion, compared with Rp5.89 trillion in 2023.
In detail, Foreign Direct Investment (PMA) declined by 17.04 per cent, or a reduction of Rp111.27 billion, from Rp652.83 billion to Rp541.56 billion. Domestic Investment (PMDN) also fell by 37.27 per cent, or a decrease of Rp1.95 trillion, from Rp5.23 trillion to Rp3.28 trillion.
The Head of Makassar City's Investment and One-Stop Integrated Services Agency (PM PTSP), Helmy Budiman, stated that investment activity in Makassar in 2024 was dominated by the housing, industrial estates and urban development sector at Rp864.158 billion. This was followed by transportation, warehousing and telecommunications at Rp749.618 billion, trade and repair at Rp652.695 billion, other services at Rp514.691 billion, and mining at Rp282.814 billion.
"Overall, these sectors also experienced a decline in investment value, except for mining, which rose from Rp74 billion to more than Rp282 billion," Helmy Budiman explained.
Despite the decline, Makassar City remains the largest contributing area in South Sulawesi, accounting for 27.27 per cent of the province's investment. "Of the more than Rp14 trillion in investment in South Sulawesi, Makassar contributed Rp3.8 trillion, while the total for other regencies and cities was more than Rp10.207 trillion," he said.
Helmy explained that the decline in investment value was influenced by macroeconomic factors, such as the presidential election, regional head elections, and global events including the Ukraine–Russia war and conflicts in the Middle East. "All of these have a macroeconomic impact, because investors observe the macroeconomic conditions first before looking at the micro level. Unfortunately, Makassar was not in an advantageous position," he said.