Domestic Investors Lead Indonesia’s Investment Realization in Q1 2025 as FDI Growth Cools
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JAKARTA, investortrust.id – Domestic investors have taken the lead in Indonesia’s investment realization during the first quarter of 2025, as foreign direct investment (FDI) shows signs of cooling amid persistent global uncertainty and shifting capital flows.
According to Investment Minister Rosan Perkasa Roeslani, who also chairs the Investment Coordinating Board, or BKPM, total realized investment reached Rp 465.2 trillion, or approximately $29.1 billion, between January and March 2025. Domestic investment accounted for 50.5 percent of the total, at Rp 234.8 trillion, outpacing foreign investment for the quarter.
FDI reached Rp 230.4 trillion, representing 49.5 percent of the total. While the figure remains substantial, it reflects a moderation compared to the strong growth seen in prior years. “Foreign investors continue to show confidence in Indonesia, but the pace of FDI growth is adapting to global challenges and regional shifts,” Rosan said during a press briefing at the Presidential Palace in Jakarta on Wednesday, April 23, 2025.
The minister noted that Indonesia remains competitive as an investment destination, although higher global interest rates, geopolitical tensions, and supply chain realignments have dampened investor appetite across emerging markets.
Singapore maintained its position as Indonesia’s top foreign investor, contributing $4.6 billion in the first quarter. It was followed by Hong Kong with $2.2 billion, China at $1.8 billion, and Malaysia and Japan, which each invested $1 billion.
“These top five countries continue to form the backbone of Indonesia’s FDI,” said Rosan, emphasizing that regional investors are still actively engaged despite the broader slowdown.
Sectorally, investment flowed into basic metal and fabricated metal manufacturing (14.5 percent), followed by transportation, warehousing, and telecommunications (14.3 percent), mining (10.4 percent), general services (8.8 percent), and industrial and office estate development (8.1 percent).
Rosan also highlighted that capital inflows continued to shift beyond Java, with non-Java regions attracting Rp 235.9 trillion, or 50.7 percent of the total investment, compared to Rp 229.3 trillion in Java.
“In the face of rising geopolitical and geo-economic tension, we’ve shown that Indonesia remains resilient and on track to meet its investment targets,” Rosan added. The minister also serves as Chairman of Danantara, Indonesia’s sovereign wealth fund.