Indonesia’s Deputy Minister of Energy and Mineral Resources, Yuliot Tanjung, presented the ASEAN Investment Report 2024. This report highlighted that Foreign Direct Investment (FDI) in Southeast Asian countries reached a record of US$ 230 billion in 2023.
This amount is equivalent to Rp 3,647 trillion, assuming an exchange rate of Rp 15,860 per US$. The report was published by the United Nations Conference on Trade and Development (UNCTAD).
Yuliot noted that this FDI achievement occurred amid a global foreign investment decline of 10%. However, the FDI in ASEAN only rose by 1% compared to the previous year, 2022.
“This marks the third consecutive year of annual growth, solidifying ASEAN’s position as the largest FDI recipient among developing regions, contributing 17% to global inflows, up from 16.5% in 2022,” he stated at the ASEAN Mining Conference (AMC) 2024. The event was held in Meru Sanur, Bali, on Monday, November 18, 2024, as reported by CNBC Indonesia.
Renewable Energy Drives Investment Growth
One key driver of this growth is the renewable energy sector, which attracted investments across the upstream segment, including mining and advanced processing, as well as downstream sectors through renewable energy power generation projects.
“From 2020 to 2023, the renewable energy industry attracted an average of over US$27 billion annually in announced greenfield investment projects, accounting for approximately 25% of total investment,” Yuliot explained.
He further emphasized that ASEAN’s robust FDI growth demonstrates the region’s fast-paced economy and the rapid progress of regional integration.
“”A focus on Dialogue Partners helps maintain a steady concentration of FDI sources, which can be further expanded to include other partner economies,” he added.
Sustainable Mining Principles in Focus
Meanwhile, ASEAN Deputy Secretary-General for the ASEAN Economic Community, Satvinder Singh, expressed optimism about the region’s significant FDI inflows. He believes they will drive economic growth through the implementation of sustainable mineral development principles prioritizing Environmental, Social, and Governance (ESG) factors, particularly in Indonesia.
“This principle of regional sustainable mineral development forms the foundation for future initiatives in the mining sector, particularly supporting ASEAN’s long-term mineral development vision beyond 2025,” Singh stated during the same event.
Singh stressed the importance of responsibly managing mineral resources in the ASEAN region.
“We can drive economic growth while protecting the environment and, more importantly, ensuring the well-being of our communities for future generations,” he emphasized.
ASEAN’s Role in Global Supply Chains
Yuliot added that ASEAN member states are major producers and processors of key metals and minerals, particularly critical minerals such as nickel, bauxite, tin, and other essential materials needed to support clean energy and digital transitions.
“This region hosts important manufacturing hubs for cobalt, manganese, graphite, silicon, copper, bauxite, and alumina, with high potential for further integration into advanced global supply chains,” he noted at the 24th ASEAN Senior Officials Meeting on Minerals (ASOMM) in Meru Sanur, Bali, quoting Kumparan.
To further promote ASEAN as a destination for mineral and coal investment, Yuliot emphasized the need for detailed data that investors require for decision-making.
“For instance, enhancing the quality and availability of geoscience data before exploration and mineral development phases and creating data sets that effectively attract investors,” Yuliot said.
