FDI in Indonesia Hits Record $55 Billion, Driving Total Investment to New High
JAKARTA, investortrust.id – Indonesia has seen an unprecedented surge in foreign direct investment, or FDI, which reached a record $55 billion in 2024, propelling the nation's total investment realization to a new high and highlighting the growing confidence of international investors in Indonesia's economic prospects.
The Investment Coordinating Board (BKPM) announced on Friday that the FDI reached to a new high of Rp 900.2 trillion ($55 billion) in 2024, up 20.9% from a year earlier. The foreigners contributed to more than half of the nation's total investment realization of Rp 1,714.2 trillion, which also reaching a new record.
Minister of Investment and Downstreaming and Head of BKPM Rosan Perkasa Roeslani announced the figures, emphasizing that the total investment realization surpassed the government's target.
"This achievement reaches 103.9% of the target previously set by President Joko Widodo of Rp 1,650 trillion. Compared to the government's strategic plan target of Rp 1,239.3 trillion, the investment realization throughout 2024 reached 138.3%," Rosan said during a press conference at the BKPM office in Jakarta on Friday, January 31, 2025.
Rosan also noted that thanks to the surge in FDI, the total investment realization for the whole year of 2024 increased by 20.8% year-on-year, a significant increase compared to the usual range of 12-13%.
The agency stated that Singapore remained the largest source of FDI, contributing $20.1 billion—one-third of total foreign investment—based on the 2024 State Budget exchange rate of Rp 15,000 per US dollar.
Hongkong came second with $8.2 billion, followed by People's Republic of China with $8.1 billion and Malaysia with $4.2 billion. The United States came at a distant fifth with total investments of $3.7 billion.
Domestic investment (PMDN) also performed strongly, reaching Rp 814.0 trillion, accounting for 47.5% of the total and marking a 20.6% year-on-year increase.
The significant investment inflow has had a positive impact on job creation, with 2,456,130 jobs generated throughout 2024, representing a substantial 34.7% year-on-year increase. This surge in employment underscores the tangible benefits of the investment boom for the Indonesian workforce.