The implementation of domestic and foreign direct investment accelerated in the third quarter of 2019, which „reflects investors’ confidence in the Indonesian economy after the election victory of incumbent President Joko Widodo,” UOB economists say in a November 12 letter.

Overall, overall investment performance increased 18.4 percent year-on-year, accelerating from 13.7 percent in the previous quarter. Total National Direct Investment (DDI) execution increased 18.9 percent yoy to 100.7 trillion rupees, accelerating from 18.6 percent in the previous quarter. Foreign direct investment (FDI) increased by 17.8 percent to 105 trillion rupees, an increase of 9.6 percent over the previous quarter.

Investments outside Java increased to 93.6 trillion rupees in the third quarter of 2019, compared to 75.8 trillion rupees over the past year, which is „a reflection of the government’s intention to achieve sustainable growth for development,” a UOB report said. „In the future, we are cautious with optimism that Indonesia will be able to attract much-needed long-term investment in this country, given the recent positive changes in maintaining low and stable inflation and rising foreign exchange reserves.”

The two most important DDI implementation sectors in the third quarter are construction with 15.8 trillion rupees (15.7%) as well as electricity, gas and water supply, with similar numbers. The top five was mining; transport, storage and telecommunications; and food crops, plantations and livestock accounted for from 10.1% to 12.1%. In the case of foreign direct investment, the transport, storage and telecommunications sectors accounted for USD 1.8 billion, or 25.7% of the investment. Electricity, gas and water supply came second, at 22.9%. Other main FDI sectors are residential construction, industrial real estate and an office building (10%); metal, except machinery and electronic devices (8.6 percent); and the chemical and pharmaceutical industry (4.3 percent).