Indonesia targets 33% jump in 2022 investment by tapping resource processing (updated)

LG

27/01/2022 08:14

* Indonesia aims to attract $83 bln in investment in
2022-minister
    * Foreign direct investment rose 10% in 2021 to nearly $32
bln
    * Aims to attract more investors into resource processing
    * Indonesia wants to develop EV industry using nickel
reserves 

 (Recasts with 2022 target)
    By Bernadette Christina and Gayatri Suroyo
    JAKARTA, Jan 27 (Reuters) - Indonesia aims to boost total
investment this year by a third, bolstered by an influx of
investment into its resource-processing sector, a cabinet
minister said on Thursday, after reporting foreign direct
investment (FDI) rose 10% in 2021.
    Southeast Asia's largest economy wants to attract 1,200
trillion rupiah ($83.43 billion) in investment this year, from
both domestic and foreign sources, up from 2021's 901.02
trillion rupiah, Investment Minister Bahlil Lahadalia told an
online news conference.
    Last year, Indonesia recorded 454 trillion rupiah of FDI, up
10% from 2020 and representing more than half of total
investment. The data excludes investment in banking and the oil
and gas sectors.
    "The priority focus for investment in 2022, firstly we must
refer to the grand vision of our president, which is
transformation and downstreaming (of natural resources),"
Investment Minister Bahlil Lahadalia told a news conference.
    Investment in this area this year included a $2.3 billion
coal gasification plant by state miner Bukit Asam  PTBA.JK  and
electric vehicle battery projects by South Korea's LG Group and
China's Contemporary Amperex Technology (CATL), he said.
 urn:newsml:reuters.com:*:nL4N2U40XF
    "This year, some (investors) have confirmed to build an
industry in North Kalimantan, which will be a big alumina
production hub and will have petrochemicals as well," Bahlil
said.  urn:newsml:reuters.com:*:nL4N2T60W2
    The minister also said he will urge Taiwan-based Foxconn
 2317.TW  to realize a planned Indonesian investment to develop
electric cars.  urn:newsml:reuters.com:*:nL1N2U10VE
    Indonesia, the world's biggest nickel producer, has been
pushing to develop an EV industry as part of a bid to squeeze
more value from its ore reserves. It banned nickel ore exports
in 2020.
    President Joko Widodo has said he wants the resource rich
country to stop exporting unprocessed bauxite, copper, tin and
gold in its next move to attract investment.
    The biggest beneficiary of FDI last year was the base metal
sector followed by mining and transport, warehousing and
telecommunication.
    Singapore was the biggest source of FDI, followed by Hong
Kong, China, the United States and Japan.
    In the fourth quarter, FDI rose 10.1% on a yearly basis,
reaching 122.3 trillion rupiah
($1 = 14,383.0000 rupiah)

 (Reporting by Gayatri Suroyo and Bernadette Christina Munthe;
Editing by Martin Petty and Ed Davies)
 ((gayatri.suroyo@thomsonreuters.com; +622129927609; Reuters
Messaging: gayatri.suroyo.thomsonreuters.com@reuters.net))