Indonesia's investment climate resilient despite global risks: BKPM

Indonesia’s long-term economic appeal remains resilient against global geopolitical turbulence, as foreign direct investment (FDI) drove more than half of the country’s total investment realisation in the first quarter of 2026. According to data from the Investment and Downstreaming Ministry/Investment Coordinating Board (BKPM), realised FDI in the first quarter of 2026 hit Rp250 trillion (approximately US$15.53 billion), accounting for 50.1 percent of the country’s total quarterly investment realisation of Rp498.8 trillion (US$30.98 billion). The FDI, according to the ministry’s spokesperson Dendy Apriandi on Wednesday, is considered the most reliable metric reflecting international trust in a nation’s stability. He further stated that true investor confidence cannot be measured accurately by tracking volatile financial market movements or short-term sentiment alone. “Attracting investment is not an easy task amid the current global geopolitical situation. Data shows that foreign investors remain highly interested in investing in Indonesia, as reflected in the continued growth in investment realisation, including the contribution of FDI reaching 50.1 percent in the first quarter of 2026,” Dendy explained. “This proves that global investor confidence in Indonesia remains strong.” The Q1 achievement sustains a consecutive, multi-year upward trajectory for foreign direct inflows entering the country. BKPM records show that Q1 FDI rose from Rp147.2 trillion (US$9.91 billion) in 2022 to Rp177 trillion (US$11.61 billion) in 2023; from Rp204.4 trillion (US$12.88 billion) in 2024, Rp230.4 trillion (US$14.04 billion) in 2025, and reached its latest peak of Rp250 trillion in 2026 (US$15.53 billion). This consistent growth serves as concrete proof that Indonesia remains a premier, attractive destination for international capital allocation, Dendy noted. It is further demonstrated by the diverse geographical origins of the inflows. Singapore, Hong Kong, China, the United States, and Japan emerged as the five largest source countries for investment into Indonesia during the first quarter of 2026. Beyond the baseline macroeconomic value, the spokesperson highlighted the tangible impact this long-term investment delivers to the domestic economy, particularly through employment and manufacturing value-add. “More importantly, investment is not only reflected in the financial market, but also flows into strategic sectors that increase added value, create jobs, and drive economic growth. That is the real benefit of investment felt by the community,” Dendy explained. During the first quarter of 2026, the combined realised investments successfully absorbed 706,533 Indonesian workers, providing a substantial boost to job creation and localised regional development. Looking ahead, he affirmed that the government remains fully committed to maintaining a stable and highly competitive investment climate. This will be achieved by continuously simplifying business licensing procedures, enhancing regulatory certainty, and strengthening national industrial downstreaming frameworks. “Today’s investments determine the future of upcoming generations. Therefore, let us work together to maintain an increasingly investor-friendly investment climate so that investment continues to grow and contribute to national economic growth,” he concluded.