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Indonesia’s Jakarta Composite index increases 6.5% since the start of 2022

FDI in the country went up 63.6 percent annually in Q3 2022

An investment of up to USD2.5 trillion is needed to achieve a six percent economic growth rate by 2024. Andreas H/Shutterstock

Indonesia outperformed the rest of the Asia-Pacific market based on its Jakarta Composite index, which was up 6.5 percent since the start of the year, according to a report by CNBC last October 2022.

Since early August, the Jakarta Composite index has remained above the 7,000 level after significantly dropping in May and July.

Maynard Arif, head of Indonesia equities at DBS Group Research, mentioned that foreign investment into stocks drove index growth and added that economic recovery has been continuous since the COVID restrictions were relaxed in the country.

The Indonesian government has also pointed out the importance of investment to the nation’s economy, reported The Jakarta Post. An investment of up to USD2.5 trillion is needed to achieve a six percent economic growth rate by 2024. 

From January through September 2022, domestic direct investment reached IDR413.1 trillion (USD26.3 billion) while FDI reached IDR479.3 trillion (USD30.5 billion).

Moreover, Reuters noted that FDI in the country went up 63.6 percent annually in Q3 on the back of the development of resource processing.

More: Indonesia’s economy grows 5.7% in 3Q 2022

Bahlil Ladalia, Indonesia’s investment minister, said, “I expect that FDI in the next quarter will also grow above 50 percent as industries will try to finalise investment targets this year in the last quarter.” He also mentioned that Beijing’s political stability will keep China’s flow of investment into Indonesia upright despite the country currently experiencing an economic slowdown. 

That said, in the third quarter, China’s investment into Indonesia reached USD1.6 billion.

Among ASEAN countries, Indonesia sits at the top of its list of large economies, with strong economic growth and consistent FDI inflows despite there being a difficult global environment. Apart from this, inbound transactions in the country alone were twice as much compared to Mailand China, according to the Financial Times.

The Property Report editors wrote this article. For more information, email: [email protected].

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