Foreign Direct Investment Remains Resilient Despite Global Economic Pressures, Says Investment Minister
JAKARTA, investor.id – Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani has said that foreign direct investment (FDI) in Indonesia remains robust despite current global economic pressures caused by the Israel-Iran conflict.
"So far we have not seen any impact on FDI; everything is still proceeding as normal," said Rosan at the Ministry of Investment/BKPM office on Tuesday (24/6/2025).
Rosan stated that foreign investment performance over the past six months has remained steady. One contributing factor is that these investors also hold investments in other Asian countries such as Singapore, China and Japan.
"Investment over the past six months has been very positive, so from our perspective there has been no significant impact. Everything is running smoothly," he affirmed.
According to data from the Ministry of Investment and Downstreaming/BKPM, investment realisation through the first quarter of 2025 reached Rp 465.2 trillion, or approximately 24.4% of the 2025 investment realisation target of Rp 1,905.6 trillion. Foreign investment accounted for Rp 230.4 trillion, or 49.3% of total investment realisation, whilst domestic investment stood at Rp 234.8 trillion, or 50.5% of total investment realisation.
Meanwhile, Andalas University economist Syafruddin Karimi said Indonesia must take concrete steps rather than merely making normative statements. He urged President Prabowo Subianto and his economic team to prepare emergency measures to address the surge in global oil prices.
"Indonesia's dependence on energy imports will become a major fiscal burden if oil prices breach US$100 per barrel. Delaying revision of energy subsidy policies will only worsen the state budget deficit," said Syafruddin.
He added that Bank Indonesia (BI) and the Ministry of Finance must strengthen coordination to stabilise the rupiah. Should global economic pressures intensify, foreign capital could flow out of the domestic financial market, depressing the rupiah exchange rate and driving up inflation.
"Monetary intervention must be accompanied by sharper policy communication to keep the market calm," Syafruddin stressed.
"So far we have not seen any impact on FDI; everything is still proceeding as normal," said Rosan at the Ministry of Investment/BKPM office on Tuesday (24/6/2025).
Rosan stated that foreign investment performance over the past six months has remained steady. One contributing factor is that these investors also hold investments in other Asian countries such as Singapore, China and Japan.
"Investment over the past six months has been very positive, so from our perspective there has been no significant impact. Everything is running smoothly," he affirmed.
According to data from the Ministry of Investment and Downstreaming/BKPM, investment realisation through the first quarter of 2025 reached Rp 465.2 trillion, or approximately 24.4% of the 2025 investment realisation target of Rp 1,905.6 trillion. Foreign investment accounted for Rp 230.4 trillion, or 49.3% of total investment realisation, whilst domestic investment stood at Rp 234.8 trillion, or 50.5% of total investment realisation.
Meanwhile, Andalas University economist Syafruddin Karimi said Indonesia must take concrete steps rather than merely making normative statements. He urged President Prabowo Subianto and his economic team to prepare emergency measures to address the surge in global oil prices.
"Indonesia's dependence on energy imports will become a major fiscal burden if oil prices breach US$100 per barrel. Delaying revision of energy subsidy policies will only worsen the state budget deficit," said Syafruddin.
He added that Bank Indonesia (BI) and the Ministry of Finance must strengthen coordination to stabilise the rupiah. Should global economic pressures intensify, foreign capital could flow out of the domestic financial market, depressing the rupiah exchange rate and driving up inflation.
"Monetary intervention must be accompanied by sharper policy communication to keep the market calm," Syafruddin stressed.