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Indonesia Q3 FDI falls 2.7per cent y/y amid COVID-19 restrictions

Indonesia Q3 FDI falls 2.7per cent y/y amid COVID-19 restrictions

FILE PHOTO: A worker walks at a construction site during dusk in Jakarta, Indonesia, April 4, 2019. REUTERS/Willy Kurniawan

JAKARTA :Foreign direct investment (FDI) into Indonesia fell 2.7per cent year-on-year in the third quarter as business activity was disrupted by coronavirus restrictions, the country's investment ministry said on Wednesday.

The third-quarter FDI in rupiah terms fell to 103.2 trillion rupiah (US$7.31 billion). In comparison, FDI had grown 19.6per cent in the second quarter.

"We all know during the restrictions many business professionals could not enter the country because of the COVID protocol, which also affected the flow of capital goods," Minister Bahlil Lahadalia said in a virtual news conference.

Indonesia from July imposed its strictest COVID-19 restrictions due to a spike in infections, which was made worse by the spread of Delta variant.

Combined with domestic investment, total direct investment in the July-September period stood at 216.7 trillion rupiah, which was slightly down on quarterly basis but up 3.7per cent from a year earlier.

Among the sectors that saw the biggest new investment during the third quarter were industrial properties, logistics and telecommunications and base metals. The ministry's data excludes FDI into banking and the oil and gas sectors.

The government is targeting 900 trillion rupiah total investment this year, which Bahlil said he was optimistic can be reached. In January-September, Indonesia has reached 73.3per cent of the target.

(US$1 = 14,120.0000 rupiah)

(Reporting by Fransiska Nangoy and Bernadette Christina Munthe; Editing by Sam Holmes and Subhranshu Sahu)

Source: Reuters

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