Investment Surges in the Second Quarter of 2025
Indonesia’s investment realization for the second quarter of 2025 has shown remarkable strength, reaching a substantial Rp477.7 trillion, equivalent to approximately US$29 billion. This figure represents an impressive 11.5 percent increase compared to the Rp428.4 trillion recorded during the same period last year. The strong performance also surpassed the first quarter’s total of Rp465.2 trillion, demonstrating sustained growth. Investment and Downstreaming Minister Rosan Perkasa Roeslani announced this positive news, highlighting that this surge in capital has created a significant number of new jobs, totaling 665,764 nationwide. A breakdown of the investment showed that foreign direct investment (FDI) accounted for Rp202.2 trillion of the total, while domestic direct investment (DDI) made up the larger portion at Rp275.5 trillion. This balance between foreign and domestic capital inflows indicates a healthy and diversified investment environment that is attracting both local and international confidence.
Foreign Investors Remain Bullish on Indonesia
The data for foreign direct investment (FDI) in the second quarter provides a clear picture of which countries are most actively investing in Indonesia. Singapore led the pack by a significant margin, with its investments totaling US$4.2 billion. This was followed by Hong Kong, which contributed a substantial US$2.3 billion in the Indonesian economy. China ranked as the third-largest foreign investor, with an investment of US$1.8 billion. The list of top foreign investors also included the United States,which invested US$800 million, and Malaysia, which added US$700 million in FDI to the quarter’s total. Geographically, the investment landscape remained well-balanced. Investments in Java reached Rp237.5 trillion, while regions outside of Java, which are often the target of government development initiatives, attracted a slightly higher total of Rp240.2 trillion. The top five investment destinations in the quarter were West Java, Jakarta, East Java, Central Sulawesi, and Banten, showcasing a concentration of investment in key economic and industrial hubs.
Achieving Half-Year Investment Goals
For the first half of 2025, the Ministry of Investment and Downstreaming reported a total investment realization of Rp942.9 trillion. This figure puts the government on a solid track to achieve its ambitious annual target of Rp1,905.6 trillion, having already reached 49.5 percent of the goal within the first six months. The total investment for the first half was composed of Rp432.6 trillion in foreign direct investment and Rp510.4 trillion in domestic direct investment. This half-year investment has been particularly impactful on the job market, collectively generating a remarkable 1,259,868 new jobs for the Indonesian workforce. Geographically, investment has been spread almost evenly, with Java attracting Rp466.9 trillion and regions outside of Java collectively attracting Rp476 trillion. This even distribution underscores the government’s successful strategy to promote economic development and investment opportunities across the entire archipelago, reducing the traditional concentration of economic activity solely in Java.
