Indonesia's foreign direct investment surged 44.2% on a yearly basis in 2022, with the base metals sector drawing in the biggest inflows, the investment minister said on Tuesday, noting 2023 would be a more difficult year to attract investment. Southeast Asia's largest economy received 654.4 trillion rupiah worth of FDI last year, or equivalent to $45.6 billion in the investment ministry's official calculation, which assumes an exchange rate of 14,350 to the dollar.

The resource-rich country has been trying to capitalise on its abundant nickel reserves to develop battery and electric vehicle industries at home. Once a major exporter of nickel ore, it stopped outbound shipments of the raw material in 2020 to make sure investors have enough for domestic processing.

Foreign direct investment in base metals and mining reached $11 billion and $5.1 billion, respectively, last year, the biggest recipients of FDI. The biggest sources were Singapore, China and Hong Kong. Total investment, including from domestic sources, reached 1,207.2 trillion rupiah ($81.02 billion), he said, roughly in line with the government's target. This year's investment target is 1,400 trillion rupiah.

Source: https://www.reuters.com/markets/asia/indonesias-fdi-jumps-2022-led-by-mineral-processing-2023-01-24/