Sumatra, Indonesia posts the fastest FDI regional growth in 2023 with the Philippines, Vietnam, Japan, and Malaysia in the top 10 global locations! by Alex Irwin-Hunt, FDI Intelligence.
Sumatra in western Indonesia ranked as the fastest-growing region for greenfield FDI announcements in 2023 due to major plans by multinationals to build digital and port infrastructure and downstream processing facilities. Almost $13bn was pledged to 13 FDI projects in Sumatra last year, up from just one project in 2022, according to fDi Markets data.
Despite the opportunities presented by its resources, Indonesia has faced scrutiny over its environmental, social, and governance credentials, due to variable labour standards and the fact coal still makes up more than 60% of its energy mix.
Alongside these developments, Sumatra has benefitted from the rush to develop digital infrastructure. Singapore-based Princeton Digital Group plans to invest at least $1bn into a data center campus in Batam across the Singapore Strait. China’s GDS Services has also committed to building a hyperscale data centre on the island.
