G20 Summit Expected to Impact Foreign Investment into Indonesia

Jumat, 11 November 2022 - 19:20 WIB

Oleh :

Arianti Widya

G20 Indonesia 2022. (ilustrasi)

Sumber :

VIVA/Fikri Halim

VIVA – The implementation of the G20 Summit in Bali, next week, is expected to have an impact on entry of foreign investment into Indonesia. Investment performance is considered to be the moving force of the economy that can increase the contribution to gross domestic product (GDP) for the next three years.

The economist of the University of Indonesia (UI), Fithra Faisal Hastiadi, said that Indonesia expects the G20 meeting to have a significant impact such as the influx of investment into Indonesia.

"What we expect is that this meeting will have a significant impact in the medium to long term with the entry of investment into Indonesia," Fithra Faisal Hastiadi said to the G20 Communication and Media Team, Friday, November 11, 2022.

Meanwhile, in the short term, the presence of state guests will encourage the Indonesian economy, because there is spending on various sectors. UI research shows that state guests attending the G20 are estimated to spend up to IDR 10 trillion on various needs.

The meeting of state leaders has a much greater impact than other events such as the annual meetings of the World Bank, the International Monetary Fund (IMF), and the Asian Games.

Fithra added, Indonesia's economic performance during the pandemic lagged behind neighboring countries such as Thailand, Malaysia, and Vietnam. For this reason, the G20 is the right momentum for investors to see firsthand the improving conditions of Indonesia.

The G20 Presidency position brings advantages for Indonesia to strengthen its position as a country worthy of investment. "The government must be able to provide confidence and create legal certainty for investors to start their business in Indonesia," Fithra remarked.

G20 Indonesia 2022. (ilustrasi)

Photo :

VIVA/Fikri Halim

Managing Director of PT Samuel International, Harri Su, said that the eyes of the world are currently on Indonesia. "This is the right time to direct investors' eyes to us, not other Asian countries," Harri Su remarked.

In the third quarter of 2022, investment realization grew by 42.1 percent compared to the same quarter the previous year. The largest contribution from foreign investment (PMA) amounted to 54.9 percent or nominally IDR 168.9 trillion.

Then, for other came from domestic investment (PMDN) amounting to IDR 138.9 trillion or contributing 45.1 percent of total investment. Based on data from the Central Statistics Agency (BPS), the investment made the second largest contribution to economic growth during the third quarter of 2022, after household consumption.

Household consumption contributed 50.38 percent, investment contributed 28.5 percent and the third position was contributed by government consumption at 7.57 percent.