Indonesian Political, Business & Finance News

BKPM Claims Foreign Investor Confidence in Indonesia Remains Strong

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Economy

The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has emphasised that global investor confidence in Indonesia remains well-maintained amidst global economic and geopolitical dynamics.

Ministry spokesperson Dendy Apriandi stated that investor confidence cannot be assessed solely by financial market movements or short-term sentiment. According to him, a more reflective indicator of confidence in a country is Foreign Direct Investment (FDI), which represents long-term investment decisions based on economic fundamentals.

Data shows that foreign investors remain interested in Indonesia, reflected in the continued growth of investment realisation, including FDI contributing 50.1 percent in the first quarter of 2026. “This proves that global investor confidence in Indonesia remains intact,” Dendy said in a statement in Jakarta on Wednesday, 1 July 2026.

Ministry data indicates that FDI realisation in the first quarter of 2026 reached Rp250 trillion, contributing 50.1 percent to the total investment realisation of Rp498.8 trillion. This achievement continues the upward trend of FDI in recent years, from Rp147.2 trillion in Q1 2022, rising to Rp177 trillion in Q1 2023, Rp204.4 trillion in Q1 2024, Rp230.4 trillion in Q1 2025, and reaching Rp250 trillion in Q1 2026.

Dendy noted that this consistent growth demonstrates Indonesia remains an attractive investment destination for global investors. This is also evident from the diversity of investor origin countries, with Singapore, Hong Kong, China, the United States, and Japan being the five largest investors in Indonesia during Q1 2026.

Beyond investment value, Dendy stressed that the benefits of investment are also reflected in its impact on the national economy, particularly in creating added value and employment. “More importantly, investment is not only reflected in financial markets but also flows into strategic sectors that increase added value, create jobs, and drive economic growth. That is the real benefit of investment felt by the public,” he explained.

Throughout Q1 2026, investment realisation was recorded as absorbing 706,569 Indonesian workers. This achievement shows that investment continues to make a tangible contribution to job creation while promoting economic development across various regions.

Looking ahead, the ministry stated it will continue to maintain a conducive investment climate through licensing simplification, increased business certainty, and strengthening downstreaming policies to ensure Indonesia remains a competitive investment destination globally. “Today’s investment determines the future of the next generation. Therefore, let us together maintain an increasingly investor-friendly climate so that investment continues to grow and contribute to national economic growth,” Dendy concluded.

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