Domestic Investment Dominates as Indonesia's 2025 Realisation Reaches Rp1,931 Trillion

The national investment sector demonstrated a positive performance throughout the past year. The Ministry of Investment and Downstreaming, alongside the Investment Coordinating Board (BKPM), reported that the accumulated investment realisation for 2025 reached Rp1,931.2 trillion. This achievement exceeded the government’s initial target of Rp1,905.6 trillion, equivalent to 101.3 per cent of the goal. Year-on-year, investment performance showed a growth surge of 12.7 per cent.

Minister of Investment and Downstreaming/Head of BKPM, Rosan Roeslani, explained that the incoming capital flows not only impacted macroeconomic figures but also directly created employment. Throughout the period, investment projects successfully absorbed 2.71 million domestic workers, marking a 10.4 per cent increase compared to the previous year.

During a working meeting with Commission XII of the Indonesian House of Representatives (DPR RI) at the Parliament Complex in Senayan, Jakarta, on Wednesday (15/7/2026), Rosan detailed that the capital structure was dominated by domestic sources. “More than half of the investment originated from domestic sources, with Domestic Direct Investment (PMDN) accounting for 53.4 per cent, or Rp1,030.3 trillion. Foreign Direct Investment (PMA) contributed 46.6 per cent, or Rp900.9 trillion,” Rosan stated.

Beyond the total value achieved, another positive trend was observed in the distribution of capital flows, which is no longer Java-centric. BKPM data shows that 51.3 per cent of the total investment, equivalent to Rp991.2 trillion, was channelled to various provinces outside Java. “This indicates that investment is becoming increasingly evenly distributed across Indonesia,” he said. The success in distributing centres of economic growth is closely linked to the strong push in the downstream industrial sector. This sector recorded a realisation of Rp584.1 trillion, reflecting an impressive surge of 43.3 per cent and supporting 30.2 per cent of the total national investment value. The largest portion, approximately 71.1 per cent of the ongoing downstream projects, is located outside Java. “This is a tangible manifestation of efforts to create domestic added value while simultaneously promoting equitable distribution,” he concluded.