Chinese Investment in Indonesia's Downstream Sector Reaches Rp103.5 Trillion in First Half of 2026
China has once again become the largest foreign investor in Indonesia’s downstream sector during the first half of 2026. Its investment value reached Rp103.5 trillion, or nearly half of the total Foreign Direct Investment (FDI) in the downstream sector, which was recorded at Rp212.8 trillion.
Data from the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) shows that China’s investment dominance was also evident in the second quarter of 2026. During that period, investment from the Bamboo Curtain country reached Rp63.1 trillion out of a total downstream sector FDI of Rp114.4 trillion.
Minister of Investment and Downstreaming/Head of BKPM Rosan Roeslani stated that the substantial and continuous flow of investment from China reflects high investor confidence in Indonesia’s investment climate.
‘I also just returned from China some time ago. They see that investment in Indonesia is always developing, running well, and generating good returns, so these investors remain committed to investing in Indonesia,’ Rosan said.
According to Rosan, this confidence is the result of the government’s efforts to maintain and improve the business climate through various policies that provide certainty for investors.
‘This has also been responded to positively by investors, especially with government regulations that provide greater certainty, particularly in terms of licensing,’ he added.
Besides China, other major contributors to downstream investment were Singapore with an investment value of Rp65.7 trillion, followed by Japan with Rp8.7 trillion and the United States with Rp8.1 trillion.
Overall, investment realisation in the downstream sector in the first half of 2026 reached Rp300.1 trillion, growing 6.9 percent compared to the same period last year. This value contributed 29.7 percent to the total national investment realisation, which reached Rp1,010.6 trillion.
The mineral sector was the largest contributor, with an investment of Rp206.5 trillion. This investment was dominated by the nickel industry at Rp71 trillion, bauxite at Rp53.8 trillion, copper at Rp37.4 trillion, iron and steel at Rp30.2 trillion, silica sand at Rp5.9 trillion, and other mineral commodities at Rp8.2 trillion.
In the next position, the plantation and forestry sector contributed Rp54.4 trillion in investment, supported by the palm oil industry at Rp29.5 trillion, log timber at Rp16.3 trillion, rubber at Rp5 trillion, and other commodities at Rp3.6 trillion.
Meanwhile, the oil and gas sector recorded an investment of Rp35.4 trillion, consisting of oil investment of Rp26.4 trillion and natural gas of Rp9 trillion.
The fisheries and marine sector booked an investment realisation of Rp3.8 trillion, originating from the development of salt, tuna, skipjack, mackerel tuna, shrimp, seaweed, swimming crab, and tilapia commodities.