Indonesia's Investment Hits Record Rp 942.9 Trillion in H1 2025, Creates 1.26 Million Jobs
Main Takeaways
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JAKARTA, Investortrust.id – Indonesia has posted a record Rp 942.9 trillion ($58.1 billion) in investment realization during the first half of 2025, driven by strong growth in both foreign and domestic investment. The achievement marks a 13.6% year-on-year increase and supported the creation of over 1.25 million jobs, according to government data released on Tuesday, July 29.
The announcement was made by Minister of Investment and Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani during a press briefing in Jakarta. He highlighted that the milestone underlines investor confidence in Indonesia’s economy despite global uncertainties.
Domestic Investment Takes the Lead
The data shows that domestic direct investment (PMDN) accounted for Rp 510.3 trillion ($31.5 billion), or 54.1% of the total, while foreign direct investment (PMA) contributed Rp 432.6 trillion ($26.7 billion), or 45.9%. The distribution between regions was nearly even, with areas outside Java recording Rp 476 trillion (50.5%) and Java receiving Rp 466.9 trillion (49.5%).
“We must emphasize the quality of this investment, not only in numbers but also in the impact it has on employment and long-term development,” Rosan said. “The key figure is job creation—1,259,868 workers absorbed in the first six months alone.”
Key Sectors: Metals, Transport, and Mining Dominate
Sectoral data from the second quarter of 2025 reveals that foreign investors continue to favor industries linked to resource processing and energy transition. The basic metals sector alone attracted $3.6 billion, or 28.8% of total PMA. Mining followed with $1.3 billion, while other top sectors included miscellaneous services ($1.1 billion), chemicals and pharmaceuticals ($0.7 billion), and real estate and industrial estates ($0.6 billion).
On the domestic front, the largest share of investment went to transportation, warehousing, and telecommunications, which together drew Rp 35.3 trillion, or 12.8% of total PMDN. Other significant sectors included mining (Rp 33.5 trillion), trade and repairs (Rp 32.2 trillion), residential and industrial zones (Rp 27.6 trillion), and services (Rp 27 trillion).
“The sustained investor interest in metals and infrastructure reflects confidence in Indonesia’s industrial downstreaming strategy,” Rosan noted. “We are on track to building long-term value from our natural resources.”
Downstream Projects Drive Nearly 30% of Total Investment
A major contributor to the H1 figures was Indonesia’s downstream policy, which accounted for Rp 280.8 trillion ($17.3 billion), or 29.8% of total investment. This represented a 54.8% increase compared to the same period last year.
Mineral processing projects led the way, with Rp 193.8 trillion invested. Within this segment, nickel dominated with Rp 94.1 trillion, followed by copper (Rp 40 trillion), bauxite (Rp 27.7 trillion), steel (Rp 21.5 trillion), tin (Rp 3.5 trillion), and other minerals (Rp 7 trillion). These projects are integral to Indonesia’s electric vehicle (EV) battery ecosystem, which the government has prioritized.
“Nickel is key to building our EV battery ecosystem,” Rosan said, emphasizing the strategic role of mineral downstreaming.
The plantation and forestry sector also saw downstream investment of Rp 67.4 trillion, including palm oil (Rp 31.6 trillion), timber (Rp 24.9 trillion), rubber (Rp 8.2 trillion), and other commodities. Meanwhile, the oil and gas sector attracted Rp 17.3 trillion, and marine and fisheries projects received Rp 2.3 trillion.
Sulawesi and Maluku Rise as Investment Hubs
Central Sulawesi emerged as the top region for downstream investment, recording Rp 55.4 trillion or 19.7% of the total. It was followed by North Maluku (Rp 33.9 trillion), West Java (Rp 28.7 trillion), East Java (Rp 18.3 trillion), and West Nusa Tenggara (Rp 17.9 trillion).
These provinces are increasingly seen as new industrial and logistical hubs, particularly for mineral refining and EV supply chains.
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