Domestic Investment Dominates Q1 2025 with 50.5% Share of Total Realisation
Jakarta — Investment figures for the first quarter of 2025 were dominated by Domestic Direct Investment (PMDN), which accounted for 50.5% of the total, or Rp 234.8 trillion. This exceeded Foreign Direct Investment (PMA), which stood at Rp 230.4 trillion or 49.5%. Total investment realisation for the period reached Rp 465.2 trillion.
According to Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani, in previous periods foreign investment had tended to be higher than domestic investment.
"This is quite interesting because usually PMA is slightly higher than PMDN. But in the first quarter, PMDN's contribution was slightly higher than foreign investment," Rosan said at a press conference, as quoted on Monday (19/5/2025).
Rosan stated that this does not indicate a decline in foreign investment. Rather, domestic investment increased far more sharply at the start of 2025 compared to PMA.
"If we look at the figures, PMDN rose 19.1% from the previous year. Meanwhile, PMA also continued to grow — it's not that it didn't increase — rising 12.7%. Both continued to grow well," he explained.
One of the factors behind the high domestic investment figure was increased infrastructure spending, such as toll road construction, particularly in North Sumatra and Riau. Additionally, there was a contribution from newly reported investment in the real estate and property sector.
Overall, the Q1 2025 investment realisation of Rp 465.2 trillion fulfilled 24.4% of this year's target of Rp 1,905.6 trillion. The figure also rose 15.9% year on year from Rp 401.5 trillion, whilst on a quarter-to-quarter basis it increased 2.7% compared to the end of 2024's Rp 452.8 trillion.
"The achievement of the Q1 2025 investment target reached Rp 465.2 trillion. This is approximately 24.4% of the 2025 target. This is very much in line with our expectations. And most importantly, the increase is 15.9% year on year compared to the previous year," he said.
According to Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani, in previous periods foreign investment had tended to be higher than domestic investment.
"This is quite interesting because usually PMA is slightly higher than PMDN. But in the first quarter, PMDN's contribution was slightly higher than foreign investment," Rosan said at a press conference, as quoted on Monday (19/5/2025).
Rosan stated that this does not indicate a decline in foreign investment. Rather, domestic investment increased far more sharply at the start of 2025 compared to PMA.
"If we look at the figures, PMDN rose 19.1% from the previous year. Meanwhile, PMA also continued to grow — it's not that it didn't increase — rising 12.7%. Both continued to grow well," he explained.
One of the factors behind the high domestic investment figure was increased infrastructure spending, such as toll road construction, particularly in North Sumatra and Riau. Additionally, there was a contribution from newly reported investment in the real estate and property sector.
Overall, the Q1 2025 investment realisation of Rp 465.2 trillion fulfilled 24.4% of this year's target of Rp 1,905.6 trillion. The figure also rose 15.9% year on year from Rp 401.5 trillion, whilst on a quarter-to-quarter basis it increased 2.7% compared to the end of 2024's Rp 452.8 trillion.
"The achievement of the Q1 2025 investment target reached Rp 465.2 trillion. This is approximately 24.4% of the 2025 target. This is very much in line with our expectations. And most importantly, the increase is 15.9% year on year compared to the previous year," he said.