Chinese Downstream Investment in Indonesia Dominates First Half, Reaching Rp103.5 Trillion

The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has recorded that China was the largest source of foreign investment for the downstream sector in Indonesia during both the second quarter and the first half of 2026. Foreign Direct Investment (FDI) from China for downstream processing in the second quarter of 2026 accounted for the highest share, reaching Rp63.1 trillion out of total downstream FDI of Rp114.4 trillion. Similarly, based on the first-half report, Chinese investment in Indonesia reached Rp103.5 trillion out of total downstream FDI of Rp212.8 trillion. Minister of Investment and Downstreaming Rosan Roeslani explained that the high investment interest from China in Indonesia was driven by an assessment that the country’s investment performance is developing and progressing well. “I also just returned from China some time ago. They see that investment in Indonesia is indeed always developing and running well, and generating good returns, so these investors remain committed to investing in Indonesia,” Rosan said during a press briefing at the Presidential Palace in Jakarta on Thursday (16/7). “This has also been responded to positively by investors, especially with government regulations that provide greater certainty, particularly in terms of licensing,” Rosan added. In the material presented by Rosan, Indonesia’s realised downstream investment in the first half of 2026 was recorded at Rp300.1 trillion, growing 6.9 per cent year-on-year (yoy). This downstream investment capacity contributed a 29.7 per cent share of the total first-half 2026 investment, which reached Rp1,010.6 trillion. The largest contributor to downstream investment came from the mineral sector, with a realisation of Rp206.5 trillion, driven by the nickel industry (Rp71 trillion), bauxite (Rp53.8 trillion), copper (Rp37.4 trillion), iron and steel (Rp30.2 trillion), silica sand (Rp5.9 trillion), and others (Rp8.2 trillion). The oil and gas sector also contributed investment of Rp35.4 trillion, consisting of the oil sector at Rp26.4 trillion and natural gas at Rp9 trillion. Lastly, the fisheries and marine sector recorded an investment realisation of Rp3.8 trillion, driven by commodities such as TCT fish (tuna, skipjack, frigate tuna), shrimp, seaweed, swimming crab, and tilapia.