Indonesia's Investment Climate Remains Strong Despite Slower Economic Growth in Q1 2025
The Ministry of Investment and Downstreaming/BKPM has affirmed that Indonesia's investment climate remains in good condition despite recording slower economic growth in the first quarter of 2025.
Indonesia recorded economic growth of 4.87 per cent in the first quarter of 2025, lower than the 5.03 per cent achieved at the end of 2024.
Deputy for Investment Climate Development at the Ministry of Investment/BKPM, Riyatno, said his office remains optimistic that economic growth in 2025 can still reach above 5 per cent, supported in part by investment inflows.
"Although growth was 4.87 per cent, compared to other G20 nations, Indonesia's figure is relatively high as it trails only China, and at the ASEAN level it is behind only Vietnam," said Riyatno at the Grab Business Forum 2025 in South Jakarta on Thursday (8 May 2025).
"From a global perspective, Indonesia is one of the key investment destinations," he added.
Riyatno cited a study showing that Indonesia ranks 18th globally as an investment destination and second in Southeast Asia (ASEAN).
"We must acknowledge that number one is Singapore. However, with the natural resources we possess and our large market, we remain one of the primary investment destinations both globally and within ASEAN," he said.
Indonesia's investment realisation reached Rp465.2 trillion in the first quarter of 2025. Minister of Investment and Downstreaming Rosan Roeslani revealed that this figure represents year-on-year growth of 15.9 per cent. Investment realisation also rose 2.7 per cent on a quarter-to-quarter basis.
The investments generated employment for 594,104 workers, representing year-on-year growth of 8.5 per cent. First quarter 2025 investment realisation is equivalent to 24.4 per cent of this year's total investment target of Rp1,905.6 trillion.
Indonesia recorded economic growth of 4.87 per cent in the first quarter of 2025, lower than the 5.03 per cent achieved at the end of 2024.
Deputy for Investment Climate Development at the Ministry of Investment/BKPM, Riyatno, said his office remains optimistic that economic growth in 2025 can still reach above 5 per cent, supported in part by investment inflows.
"Although growth was 4.87 per cent, compared to other G20 nations, Indonesia's figure is relatively high as it trails only China, and at the ASEAN level it is behind only Vietnam," said Riyatno at the Grab Business Forum 2025 in South Jakarta on Thursday (8 May 2025).
"From a global perspective, Indonesia is one of the key investment destinations," he added.
Riyatno cited a study showing that Indonesia ranks 18th globally as an investment destination and second in Southeast Asia (ASEAN).
"We must acknowledge that number one is Singapore. However, with the natural resources we possess and our large market, we remain one of the primary investment destinations both globally and within ASEAN," he said.
Indonesia's investment realisation reached Rp465.2 trillion in the first quarter of 2025. Minister of Investment and Downstreaming Rosan Roeslani revealed that this figure represents year-on-year growth of 15.9 per cent. Investment realisation also rose 2.7 per cent on a quarter-to-quarter basis.
The investments generated employment for 594,104 workers, representing year-on-year growth of 8.5 per cent. First quarter 2025 investment realisation is equivalent to 24.4 per cent of this year's total investment target of Rp1,905.6 trillion.