Foreign Direct Investment in Indonesia Jumps 12.7% to Rp 230.4 Trillion, Total Investment Hits Rp 465.2 Trillion
Main Takeaways
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JAKARTA, investortrust.id – Indonesia has recorded a strong surge in foreign direct investment, helping to drive total capital inflows sharply higher in the first quarter of 2025. The development highlights growing international and domestic confidence in the country’s economic policies.
The Ministry of Investment and Downstreaming, also known as the Indonesia Investment Coordinating Board or BKPM, reported that foreign direct investment reached Rp 230.4 trillion, equivalent to $14 billion, in the January-March period, representing a 12.7% year-on-year increase and a 2.7% gain compared to the previous quarter.
The strong performance pushed total realized investment in Indonesia to Rp 465.2 trillion ($28.3 billion), a 15.9% jump compared to Rp 401.5 trillion recorded in the same period last year.
“The surge in foreign direct investment has been instrumental in boosting Indonesia’s total realized investment in the first quarter. The contribution from the downstream sector has also significantly expanded," Minister of Investment and Head of BKPM Rosan P Roeslani said during a press briefing in Jakarta on Tuesday, April 29, 2025.
Domestic Investment Also Rises Sharply
Domestic investment, known as PMDN, grew even faster than foreign investment, reaching Rp 234.8 trillion, an increase of 19.1% year-on-year. Domestic investment accounted for 50.5% of total realized investment, slightly higher than foreign investment's 49.5% share.
The Rp 465.2 trillion total marked 24.4% of the government’s full-year investment target of Rp 1,905.6 trillion ($116 billion), signaling a strong start to the year.
Singapore Remains Top Investor
According to data from the Ministry of Investment and BKPM, Singapore retained its position as Indonesia’s largest source of foreign investment in the first quarter, channeling around $4.6 billion.
Hong Kong, a Special Administrative Region of China operating under the "one country, two systems" principle, followed with $2.2 billion. Mainland China was third with $1.8 billion, while Malaysia and Japan rounded out the top five, each investing approximately $1.0 billion.
Investment Concentrates Outside Java
Highlighting Indonesia’s broader development strategy, Rosan, who also serves as CEO of the sovereign wealth fund Danantara Indonesia, noted that investment outside Java surpassed investment within the island.
Investment outside Java reached Rp 235.9 trillion, up 17.4% year-on-year and accounting for 50.7% of total realized investment. Meanwhile, Java still attracted a substantial Rp 229.3 trillion, growing by 14.3% year-on-year and making up 49.3% of the total.
594,104 New Jobs Created
In addition to boosting capital inflows, the investments made a significant impact on Indonesia’s labor market. Investment projects created 594,104 jobs for Indonesian workers in the first quarter of 2025, representing an 8.5% increase from the previous year.
"This surge not only brings much-needed capital amid global economic uncertainty but also expands employment opportunities across the country," Rosan said.
Downstream Sector Leads the Way
The downstream sector — a core priority under President Prabowo Subianto’s administration — emerged as a key growth driver, contributing nearly one-third of total investment. The government's emphasis on processing natural resources domestically is starting to yield tangible results.
Investments in downstream sectors totaled Rp 136.3 trillion, with the bulk directed at mineral processing, especially nickel, copper, and bauxite, amounting to Rp 97.6 trillion. The plantation and forestry sectors, primarily palm oil and timber, attracted another Rp 31.1 trillion.
Leading provinces for downstream investment were Central Sulawesi and North Maluku.
Metal, Transport, and Mining Sectors Dominate
Among the most attractive sectors for investors, the basic metals and fabricated metal products sector led the way, securing Rp 67.3 trillion in investment. Transport, warehousing, and telecommunications followed closely at Rp 66.5 trillion, while the mining sector attracted Rp 48.6 trillion.
Other notable sectors included other services at Rp 41.0 trillion and housing, industrial estates, and offices at Rp 37.5 trillion.
Jakarta Remains Top Regional Destination
Regionally, Jakarta maintained its position as the favorite investment destination, pulling in Rp 69.8 trillion during the quarter.
Other top provinces included West Java with Rp 68.5 trillion, East Java with Rp 36.0 trillion, Central Sulawesi with Rp 32.7 trillion, and Banten with Rp 31.1 trillion.