In the second quarter of 2024, the Ministry of Investment/Investment Coordinating Board (BKPM) recorded significant investment realization from three key regions: the United States, Canada, and Latin America. These figures reflect strong global investor confidence in Indonesia's economic potential and reaffirm its strategic position as a leading investment destination in Southeast Asia.
Investments from the United States reached a total of $2 billion, spread across 2,299 projects in various sectors. Most of these investments flowed into the mining sector, accounting for 73% of the total, while 13% were directed to the metal industry. This indicates a strong interest from American investors in Indonesia's natural resources and heavy industry potential. East Java became the largest recipient of U.S. investments, accounting for 40.5% of the total, followed by Papua at 24.2%. These figures highlight the crucial role of these provinces in attracting foreign investment and supporting local economic growth.
Canadian investment in Indonesia also showed strong growth, totaling $1.9 million across 458 projects. Most of these investments were directed to the mining sector, which accounted for 80% of the total. This demonstrates significant interest from Canadian investors in Indonesia's mineral wealth and natural resources. South Sulawesi was the primary recipient of Canadian investment, with 64%, followed by Central Sulawesi at 17% and Southeast Sulawesi at 11%. Other regions, such as Bali, West Java, Jakarta, and Central Kalimantan, also received substantial investment inflows, indicating a more balanced distribution across various parts of Indonesia.
During the same period, investments from Latin America amounted to $12.3 million, distributed across 421 projects. Most of these investments, around 24%, were directed to the hotel and restaurant sector, with Bali as the preferred location, receiving 62% of the total investment. As an international tourist destination that attracts many visitors, Bali has become a hub for investment growth in the tourism sector. Additionally, investments from Latin America flowed into other sectors, such as housing, industrial estates, and office space (22%), services (19%), and trade and repair (11%). This diversification reflects a growing interest from Latin American investors in broader economic opportunities in Indonesia.
These investment figures underscore Indonesia's potential as an attractive investment destination in Southeast Asia. With the ongoing development of infrastructure projects, environmentally friendly initiatives, and opportunities across various sectors, Indonesia offers numerous strategic opportunities for investors to expand their presence in the regional market. The presence of investments from the United States, Canada, and Latin America strengthens Indonesia's position as a competitive and appealing destination for global investment, contributing positively to inclusive and sustainable economic development.