Foreign Direct Investment in Indonesia Declines 6.9% in Q2 2025
The Ministry of Investment/BKPM recorded a decline in foreign direct investment (FDI) in Indonesia during the second quarter of 2025. FDI realisation in Q2 2025 reached only Rp 202.2 trillion, a drop of 6.9% compared to Q2 2024's figure of Rp 217.3 trillion.
Responding to the data, Chandra Wahjudi, Deputy Chairman for Public Policy at the Indonesian Employers' Association (Apindo), stated that although foreign investment realisation had declined, this should not be interpreted as investors beginning to abandon Indonesia.
He noted that countries such as the United States have started pulling investment back domestically and tightening global competition. "Geopolitical tensions across various regions have also affected cross-border investment flows," Chandra told Kontan.co.id on Tuesday (29 July).
Chandra also raised the issue of legal and regulatory certainty as a factor contributing to lower foreign investor appetite. He added that attractive tax incentives would help boost Indonesia's appeal to investors.
"In addition, the quality of human resources must also be improved so that they are highly competitive and more productive," he said.
Responding to the data, Chandra Wahjudi, Deputy Chairman for Public Policy at the Indonesian Employers' Association (Apindo), stated that although foreign investment realisation had declined, this should not be interpreted as investors beginning to abandon Indonesia.
He noted that countries such as the United States have started pulling investment back domestically and tightening global competition. "Geopolitical tensions across various regions have also affected cross-border investment flows," Chandra told Kontan.co.id on Tuesday (29 July).
Chandra also raised the issue of legal and regulatory certainty as a factor contributing to lower foreign investor appetite. He added that attractive tax incentives would help boost Indonesia's appeal to investors.
"In addition, the quality of human resources must also be improved so that they are highly competitive and more productive," he said.