Indonesian Political, Business & Finance News

Base Metal Industry Leads Q1 2025 Investment at Rp67.3 Trillion

| Source: GALERT
JAKARTA — The Ministry of Investment and Downstreaming/BKPM reported that the Base Metal, Metal Goods, Non-Machinery and Equipment Industry remained the sub-sector attracting the highest investment realisation throughout Q1 2025, reaching Rp67.3 trillion.

"If we look at total investment inflows, combining both foreign direct investment (PMA) and domestic investment (PMDN) in the first three months, the sector is still dominated by the base metal, metal goods, non-machinery and equipment industry — approximately 14.5 per cent or Rp67.3 trillion," said Investment Minister/BKPM Head Rosan Roeslani at a press conference in Jakarta on Tuesday (29 April).

Following the metal industry, the transportation, warehousing and telecommunications sector ranked second at Rp66.5 trillion, or 14.3 per cent of total investment. Next was the mining sector at Rp48.6 trillion (10.4 per cent), other services at Rp41.8 trillion (8.8 per cent), and housing or industrial estates and offices at Rp37.5 trillion (8.1 per cent).

"These are the top five sectors that continue to grow and develop in the first three months, and we see this trend continuing into the next quarter and even in the years ahead," Rosan added.

When broken down by source of investment funds, PMA and PMDN targeted different primary sectors. Foreign investment targeted the base metal, metal goods, non-machinery and equipment industry with realisation reaching US$3.6 billion, followed by mining at US$1.2 billion, transportation, warehousing and telecommunications at US$1.1 billion, other services at US$1.1 billion, and the chemical and pharmaceutical industry at US$0.9 billion.

For domestic investment, the targeted sectors comprised transportation, warehousing and telecommunications at Rp48.4 trillion; mining at Rp29.5 trillion; housing or industrial estates and offices at Rp25.3 trillion; other services at Rp23.7 trillion; and trade and repairs at Rp18.9 trillion.

Tracing the source countries of foreign investment, Rosan noted that Singapore remained the largest foreign investor, with investment realisation reaching US$4.6 billion in Q1 2025. It was followed by Hong Kong (US$2.2 billion), China (US$1.8 billion), Malaysia (US$1 billion), and Japan (US$1 billion).

Rosan explained Malaysia's entry into the top five source countries for foreign investment, a position previously held by the United States or South Korea. "Malaysia has now jumped to become the fourth-largest investor country in Indonesia, partly because of joint ventures formed between Indonesian and Malaysian companies, which then expanded into Indonesia," he said.

The remaining top ten foreign investment source countries included the United States (US$802.6 million) in sixth place, followed by South Korea (US$683.2 million), the Netherlands (US$403.8 million), the British Virgin Islands (US$173.6 million), and the United Kingdom (US$149.6 million).

Rosan affirmed that his ministry would continue updating data on investment inflows from various source countries, even those with investment values below US$1 million. "This is a comprehensive and complete picture of investment coming into Indonesia — where the FDI comes from, what sectors it goes into, the realisation amounts, which industries, and what kind of job creation — all of this is well recorded and comprehensive," he concluded.
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