JAKARTA \u2014 The government recorded Indonesia\u2019s investment realisation\nin the first quarter of 2025 at Rp 465.2 trillion. Of this total,\ninvestment in the downstreaming sector reached Rp 136.3 trillion,\ncontributing 29.3 per cent of total realised investment. The figure\nindicates that the national downstreaming policy is increasingly\nbecoming a primary attraction for investors, both domestic and\nforeign.<\/p>\n
Minister of Investment and Downstreaming\/Head of the Investment\nCoordinating Board (BKPM) Rosan Perkasa Roeslani stated that this\nachievement is equivalent to 24.4 per cent of the 2025 national\ninvestment target of Rp 1,905.6 trillion. On a year-on-year basis,\ninvestment realisation rose 15.9 per cent compared to Rp 401.5 trillion\nin Q1 2024. On a quarter-to-quarter basis, investment realisation\nincreased 2.7 per cent from Rp 452.8 trillion.<\/p>\n
\u201cThis investment realisation is very much in line with our\nexpectations. The 15.9 per cent year-on-year increase demonstrates a\npositive trend,\u201d said Rosan at the Q1 2025 Investment Realisation\nAchievement Press Conference in Jakarta on Tuesday (29\/4\/2025).<\/p>\n
Of the total realisation, domestic investment (PMDN) contributed Rp\n234.8 trillion (50.5 per cent), whilst foreign direct investment (PMA)\naccounted for Rp 230.4 trillion (49.5 per cent). According to Rosan, the\ndominance of domestic investment was not due to a decline in foreign\ninvestment, but rather a significant surge in domestic investment. PMDN\nincreased 19.1 per cent compared to the previous year, whilst PMA also\ngrew 12.7 per cent.<\/p>\n
\u201cThis shows that the confidence of both domestic and foreign\ninvestors in Indonesia remains strong,\u201d Rosan explained.<\/p>\n
Factors driving the increase include the acceleration of\ninfrastructure development, such as toll roads in North Sumatra and\nRiau, as well as new investment reporting in the real estate sector.<\/p>\n
By country of origin, the largest sources of foreign investment were\nSingapore at US$4.6 billion, Hong Kong at US$2.2 billion, China at\nUS$1.8 billion, Malaysia at US$1 billion, and Japan at US$1 billion.<\/p>\n
The sectors absorbing the most foreign investment include basic\nmetals and metal goods (excluding machinery and equipment), mining,\ntransportation, warehousing and telecommunications, other services, and\nthe chemical and pharmaceutical industries.<\/p>\n
By region, investment outside Java reached Rp 235.9 trillion,\nslightly higher than investment on Java at Rp 229.3 trillion. This\nindicates a positive shift towards more equitable distribution of\nnational investment.<\/p>\n
Investment realised during Q1 2025 also created 594,104 new jobs, an\nincrease of 8.5 per cent compared to the same period last year.<\/p>\n
\u201cThis is a very positive indicator amidst geopolitical and global\neconomic uncertainty. Investor interest, both domestic and foreign, in\nIndonesia continues to strengthen,\u201d said Rosan.<\/p>\n
Regarding the downstreaming sector, investment realisation reached Rp\n136.3 trillion, a significant increase of 79.82 per cent compared to Rp\n75.8 trillion in Q1 2024. In detail, downstreaming investment was\ndominated by minerals at Rp 97 trillion, plantations and forestry at Rp\n31.13 trillion, oil and gas at Rp 6.55 trillion, and fisheries and\nmaritime at Rp 1.03 trillion.<\/p>\n
Previously, Minister of Energy and Mineral Resources (ESDM) Bahlil\nLahadalia stated that to support the downstreaming programme through to\n2040, Indonesia requires approximately US$550 billion or Rp 9,249\ntrillion in investment, covering 28 commodities across the mining, oil\nand gas, fisheries, forestry, and agricultural sectors.<\/p>\n
Of this requirement, first-phase investment in 2025 has already\nreached commitments worth US$40 billion or Rp 672.82 trillion. Bahlil\nemphasised that downstreaming can significantly increase added value, as\nseen with nickel, where added value rose from US$3.3 billion to US$35\nbillion.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesias-q1-2025-investment-reaches-rp-465-2-trillion-downstreaming-sector-surges-80-per-cent-1771237352", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }