Research

Industrial Estate: Riding The Investment Cycle

market-avatar

Algo Research Team

Industry | Jan 26, 2023 | Views: 30

The content provided here is for informational purpose only. It is not an advise or recommendation. Please do your own research.
content-img

Key Summary:

  • Total realized investment rose +30% YoY in 4Q22 (FY22: +34% YoY)
  • The top 5 sectors brought in IDR645tn or USD43bn in investment
  • Industrial Estate is a proxy to investment that is still overlooked

Credit when it's due. The significant effort made by the government to change its mindset, regulation and bureaucracy have definitely paid off in terms of attracting investment in the country. Granted, there is a plethora of improvements that can be done by the government to make the country better and grow stronger; after all, our economy has not grown more than 5% on average in the past decade.


In terms of investment realization, as per 4Q22, FDI (Foreign Direct Investment) stood at IDR175tn (+43% YoY) while DDI (Domestic Direct Investment) at IDR140tn (+17% YoY), bringing the total to IDR335tn (+30% YoY). For the full-year 2022, total investment realization was recorded at IDR1,207tn or USD80bn (+34% YoY); an all time high. Such investment has provided roughly 1.3mn workers in 2022 vs. 1.2mn in 2021.

How was our research?

DISCLAIMER: Algo is an independent research platform and is not affiliated with any financial institution. We are not a licensed securities dealer, financial advisor, broker, or investment bank. The contents shared across our website, and social media platforms are intended for informational purposes only and reflect our views and opinions. It is not meant to be construed as financial advice and/or a recommendation to buy or sell an asset. Past performance does not guarantee future results. As a research platform, our contents are made to provide data-driven information and research-based articles, and should not be used as a basis for making any investment decisions. We strongly encourage you to conduct your own research and consult with a licensed financial advisor before making any investment decisions. Algo is not regulated by OJK (Otoritas Jasa Keuangan) and does not provide any investment services. We are not responsible for any financial decisions you make based on the information provided. All content is presented with the intent of informing only.