Foreign Investors Queue to Enter Indonesia, Investment Potential Reaches Billions
JAKARTA – Foreign investor interest in placing capital in Indonesia continues to show a positive trend. A number of Special Economic Zones (KEK) are even beginning to experience capacity constraints due to the high demand for investment that keeps arriving.
Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, revealed that the high investor enthusiasm is visible in three main manufacturing zones, namely KEK Kendal, KEK Gresik, and KEK Galang Batang in Bintan. According to him, the administrators of these three zones are now applying for land expansion averaging twice their existing size to accommodate the entry of new investors.
“The existing investment is almost full, while foreign investors wanting to enter keep arriving,” said Susiwijono in Jakarta on Friday (19/6). The development proposals include an additional 1,200 hectares in KEK Gresik, 1,000 hectares in KEK Kendal, and around 2,600 hectares in KEK Galang Batang.
The government estimates this expansion could potentially bring in additional investment of up to Rp557 trillion in the long term. Investment realisation is projected to occur in stages according to project development and industry needs. Susiwijono assessed this condition as an indicator that global investor confidence in Indonesia remains intact amid global economic dynamics.
Similar optimism was conveyed by Minister of Investment and Downstreaming, Rosan Roeslani. Based on a series of meetings with investors in various global financial centres such as Singapore, Hong Kong, London, Boston, Washington DC, New York, and Japan, the response to Indonesia’s economic prospects was said to remain positive. “Investors see Indonesia as a long-term investment destination because of economic stability and business certainty,” he said.
From the financial market side, positive sentiment is also reflected in foreign capital flows. Bank Indonesia recorded a net inflow of USD 3.9 billion, or approximately Rp69 trillion, up to mid-June 2026, reversing a previous condition that recorded capital outflows.
Economists assess that the heavy flow of investment has the potential to strengthen the processing industry, expand employment, and increase state revenue. The government is also urged to ensure that incoming investment can create broader partnerships with national business actors so that economic benefits can be felt sustainably.