Foreign Investor Interest in Indonesia Remains High Despite Global Conflicts, Says Investment Minister
JAKARTA — The Minister of Investment and Downstream Industries/Head of BKPM has claimed that foreign investor interest in investing in Indonesia remains high, despite the global landscape being marked by various geopolitical conflicts and uncertainty.
According to Minister Rosan Perkasa Roeslani, current global conditions have not yet affected Indonesia's investment climate. "From my perspective, looking at the appetite of our investors, it remains the same — still high," Rosan explained when met at the Ministry of Investment/BKPM office in Jakarta on Tuesday (24/6).
Rosan said the strong investment interest in Indonesia is reflected in the continued desire of investors to invest in the Asian region, including Singapore, China, Malaysia and Japan. "If we look at the nature of our investors, particularly FDI, they are concentrated more in Asian countries such as Singapore, possibly China, Hong Kong, Malaysia, Japan and Korea. So the investment commitment remains the same, still high," he added.
He further assessed that the escalation of various international conflicts at the global level has not yet had a significant impact on investment in Indonesia. "I see that the impact, if I may say, is almost — for us at least — from the FDI side, we have not seen any effect so far. Everything is still running, the incoming investment over the past six months has been very good, very positive, all proceeding well," he explained.
According to the Ministry of Investment and Downstream Industries/BKPM report, investment realisation in the first quarter of 2025 in Indonesia was recorded at Rp465.2 trillion, up 15.9 per cent year-on-year compared to Rp401.5 trillion in Q1 2024. Rosan said this achievement remains on track with the target set for this year of Rp1,905.6 trillion, meaning that during Q1 2025, investment realisation in Indonesia had already reached nearly a quarter of the target, precisely 24.4 per cent.
The investment realisation comprised Rp230.4 trillion in foreign direct investment (PMA) and Rp234.8 trillion in domestic investment (PMDN). Domestically, the largest investment was received from outside Java at Rp235.9 trillion, equivalent to 50.9 per cent of total Q1 2025 investment realisation, whilst Java accounted for Rp229.3 trillion or 49.3 per cent.
In more detail, the majority of Q1 2025 investment realisation was contributed by the tourism sector at 8.8 per cent or Rp41 trillion. The Ministry of Investment and Downstream Industries/BKPM identified this contribution as larger than the plantation and forestry sector, which contributed Rp31.13 trillion, and the oil and gas sector at Rp6.55 trillion.
According to Minister Rosan Perkasa Roeslani, current global conditions have not yet affected Indonesia's investment climate. "From my perspective, looking at the appetite of our investors, it remains the same — still high," Rosan explained when met at the Ministry of Investment/BKPM office in Jakarta on Tuesday (24/6).
Rosan said the strong investment interest in Indonesia is reflected in the continued desire of investors to invest in the Asian region, including Singapore, China, Malaysia and Japan. "If we look at the nature of our investors, particularly FDI, they are concentrated more in Asian countries such as Singapore, possibly China, Hong Kong, Malaysia, Japan and Korea. So the investment commitment remains the same, still high," he added.
He further assessed that the escalation of various international conflicts at the global level has not yet had a significant impact on investment in Indonesia. "I see that the impact, if I may say, is almost — for us at least — from the FDI side, we have not seen any effect so far. Everything is still running, the incoming investment over the past six months has been very good, very positive, all proceeding well," he explained.
According to the Ministry of Investment and Downstream Industries/BKPM report, investment realisation in the first quarter of 2025 in Indonesia was recorded at Rp465.2 trillion, up 15.9 per cent year-on-year compared to Rp401.5 trillion in Q1 2024. Rosan said this achievement remains on track with the target set for this year of Rp1,905.6 trillion, meaning that during Q1 2025, investment realisation in Indonesia had already reached nearly a quarter of the target, precisely 24.4 per cent.
The investment realisation comprised Rp230.4 trillion in foreign direct investment (PMA) and Rp234.8 trillion in domestic investment (PMDN). Domestically, the largest investment was received from outside Java at Rp235.9 trillion, equivalent to 50.9 per cent of total Q1 2025 investment realisation, whilst Java accounted for Rp229.3 trillion or 49.3 per cent.
In more detail, the majority of Q1 2025 investment realisation was contributed by the tourism sector at 8.8 per cent or Rp41 trillion. The Ministry of Investment and Downstream Industries/BKPM identified this contribution as larger than the plantation and forestry sector, which contributed Rp31.13 trillion, and the oil and gas sector at Rp6.55 trillion.