Indonesia Records Rp465.2 Trillion in Investment During First Quarter of 2025
JAKARTA — The government has recorded a positive achievement in investment realisation during the first quarter of 2025. At a press conference held at the Presidential Palace on 23 April, Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani revealed that total incoming investment reached Rp465.2 trillion. This figure is equivalent to 24.4 per cent of the government's annual investment target of Rp1,905.6 trillion.
"Total investment in the first quarter shows a very positive figure of Rp465.2 trillion, comprising 49.5 per cent foreign investment and 50.5 per cent domestic investment," Rosan explained.
Rosan detailed that foreign investment reached Rp230.4 trillion, whilst domestic investment stood at Rp234.8 trillion. The distribution of investment also showed an interesting pattern, with investment in Java reaching Rp229.3 trillion or 49.3 per cent of total investment, whilst areas outside Java reached Rp235.9 trillion or 50.7 per cent.
Compared with the same period the previous year, the figure represented an increase of 15.9 per cent, equivalent to an additional Rp63.7 trillion in investment. Compared with the fourth quarter of 2024, which recorded Rp452.8 trillion, first quarter 2025 investment rose by approximately 2.7 per cent.
Rosan noted that the rise in investment demonstrates investor confidence in Indonesia, even amid escalating global geopolitical tensions. According to him, this reflects the government's success in maintaining economic stability, which is a crucial factor in attracting investor interest.
However, regarding reports of LG cancelling its investment related to the electric vehicle battery ecosystem, Rosan affirmed that LG had not entirely withdrawn its investment. He explained that LG's planned investment of USD9.8 billion consisted of several projects, including mining and battery recycling, spread across several joint ventures.
"LG's investment has not been entirely cancelled. Several projects have commenced, including a USD1.1 billion project that is already underway. This shows that despite changes, there remains ongoing commitment to other projects," he added.
"Total investment in the first quarter shows a very positive figure of Rp465.2 trillion, comprising 49.5 per cent foreign investment and 50.5 per cent domestic investment," Rosan explained.
Rosan detailed that foreign investment reached Rp230.4 trillion, whilst domestic investment stood at Rp234.8 trillion. The distribution of investment also showed an interesting pattern, with investment in Java reaching Rp229.3 trillion or 49.3 per cent of total investment, whilst areas outside Java reached Rp235.9 trillion or 50.7 per cent.
Compared with the same period the previous year, the figure represented an increase of 15.9 per cent, equivalent to an additional Rp63.7 trillion in investment. Compared with the fourth quarter of 2024, which recorded Rp452.8 trillion, first quarter 2025 investment rose by approximately 2.7 per cent.
Rosan noted that the rise in investment demonstrates investor confidence in Indonesia, even amid escalating global geopolitical tensions. According to him, this reflects the government's success in maintaining economic stability, which is a crucial factor in attracting investor interest.
However, regarding reports of LG cancelling its investment related to the electric vehicle battery ecosystem, Rosan affirmed that LG had not entirely withdrawn its investment. He explained that LG's planned investment of USD9.8 billion consisted of several projects, including mining and battery recycling, spread across several joint ventures.
"LG's investment has not been entirely cancelled. Several projects have commenced, including a USD1.1 billion project that is already underway. This shows that despite changes, there remains ongoing commitment to other projects," he added.