by Elisa Valenta
Indonesia's foreign direct investment (FDI) in the first quarter of 2020 dropped by 7% (q-o-q) to Rp98.1 trillion as the coronavirus pandemic has halted the global investment. According to Indonesia's Coordinating Board (BKPM) chairman, Bahlil Lahadalia, the decline may affect the projected FDI this year as foreign investors are delaying their projects.
By country of origin, Singapore remained Indonesia's top investor, which contributed 40% to total FDI or as much as $2.7 billion, followed by China ($1.3 billion) and Hongkong ($634 million).
On the contrary, the domestic investment, which made up about 53% of total investment in the first quarter, rose by 9.4% compared to the previous quarter to Rp112.7 trillion.
The domestic investment was mainly disbursed to transportation, warehouse, telecommunication, construction and agriculture sectors, created more than 300,000 jobs during the period. Meanwhile, the primary beneficiaries of FDI during the period were the base metal industry; the power, gas, and water utility sector; and the transportation, warehousing, and telecommunication sector.
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