The Indonesian Chamber of Commerce and Industry (KADIN) welcomes and appreciates the achievement of investment realization in the first half this year (H1 2024) that reached IDR 829.9 trillion, equivalent to 50.3% of the yearly target.
This increased 22.3% year-on-year, while investment distribution outside Java increased by 17.3% compared to the previous year, reaching IDR416.2 trillion.
Commending such achievement, KADIN Vice Coordinator Chairman for Organization, Legal Affairs, and Communication of Yukki Nugrahawan Hanafi said, “This shows that the distribution of investment realization has begun to be even and inclusive, reaching new growth areas that are not only centralized in Java.”
“If we look closely at the portion of investment realization contributions in the first semester of 2024, it is still dominated by foreign investment,” said Yukki, adding that foreign investment reached IDR 421.7 trillion or 50.8% compared to the portion of domestic investment (PMDN) that reached IDR 408.2 trillion (49.2%).
According to Yukki, although the economic challenges from external factors are full of uncertainty such as geopolitical intensity and the era of high interest rates, the investment achievements in the first semester of 2024 show confidence in the national economy by making Indonesia a destination country for investment.
“In addition, the business also sees that investment realization through PMDN and PMA in the first semester of 2024 also opened up new jobs for more than 1.2 million workers,” said Yukki.
KADIN also noted that the contribution to the Small and Medium Enterprises (UMK) sector has also opened up even more jobs, where there are more than 4.6 million workers absorbed from the total investment realization of IDR 127 trillion.
This, he added, can be underlined that the achievement has also helped improve the economic welfare of the community.
“Therefore, we support even more increases in investment realization targeting the MSME sector, including the ease of bank credit for MSMEs which until now has still reached 19% of the total credit distribution target of 30%,” explained Yukki.
He explained that KADIN is also confident and optimistic that the investment realization target for 2024 can be achieved.
Nevertheless, Yukki continued, the business world will continue to encourage the Government to always maintain economic stability by ensuring a conducive business climate through various regulatory simplifications.
In addition, encouraging the availability of infrastructure, and sustainable investment incentives, especially in priority sectors such as the digital economy, green economy, down streaming that builds a comprehensive upstream-downstream ecosystem, and involving MSME actors in order to encourage inclusive economic growth.
“All of that must be our joint commitment and carried out sustainably,” said Yukki.
Yukki said that throughout this year alone, micro and small businesses have created new jobs for 4.6 million people in Indonesia.
In fact, according to data from the Ministry of Finance of the Republic of Indonesia, MSMEs have contributed 90% of business activities and contributed more than 50% of jobs worldwide. In Indonesia, MSMEs also represent around 99% of total business activities in the country. In addition, MSMEs absorb 97% of jobs in Indonesia.