Indonesia's Investment Realisation 2024–2026 Continues to Rise: Total Rp4.144 Trillion
JAKARTA – Indonesia has recorded consistent investment growth over the past two years. Realisation of Foreign Investment (PMA) and Domestic Investment (PMDN) has continuously exceeded the targets set by the government.
However, behind these impressive figures lies a more complex reality: there is a significant gap between signed investment commitments, including those from dozens of overseas visits by President Prabowo Subianto, and the investments that have actually flowed and are operational on the ground.
Official data from the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) from 2024 to the first quarter of 2026 provides a comprehensive yet critical overview of the direction of national investment.
What is the Difference Between Investment Realisation and Commitments?
Before delving into the numbers, it is important to understand the fundamental difference between the two terms that are often confused:
Investment realisation refers to capital that has been physically spent: land purchased, buildings constructed, machinery installed, infrastructure developed. This data is collected from the Investment Activity Report (LKPM), which companies are required to submit quarterly to BKPM via the Online Single Submission (OSS) system. In other words, this is money that has tangibly moved in the real economy, not just promises.
Investment commitments are statements of intent or agreements on paper, typically in the form of Memoranda of Understanding (MoUs) signed at business forums, state visits, or investment conferences. These commitments may, but do not automatically, become realisations. The process is lengthy: feasibility studies, contract negotiations, permitting, land acquisition, construction—all must be completed before a commitment turns into real investment.
Investment Realisation in 2024: Rp1.714 Trillion, Exceeding Target
From January to December 2024, Indonesia recorded investment realisation of Rp1.714 trillion, exceeding the Rp1.650 trillion target with an achievement of 103.9%. This figure grew by 20.8% compared to 2023.
The top five sources of PMA in 2024 were Singapore (USD20.1 billion), Hong Kong (USD8.2 billion), China (USD8.1 billion), Malaysia (USD4.2 billion), and the United States (USD3.7 billion). The downstreaming sector contributed Rp407.8 trillion or 23.8% of total investment, with nickel as the largest contributor at Rp153.2 trillion.
Investment realisation in 2024 also absorbed 2,456,130 workers, up 34.7% from the previous year, marking the highest increase in labour absorption in recent years.
Quarterly Breakdown for 2024
Investment Commitments in 2024: A Pile of MoUs from Prabowo’s Diplomacy
In October 2024, the Prabowo Subianto administration was officially inaugurated and immediately began what later became known as a diplomatic blitz—a series of intensive overseas visits with the primary mission of attracting foreign investment.
From October to December 2024, Prabowo visited several strategic partners and returned with significant investment commitments:
It should be noted: these MoU commitments are not part of the 2024 LKPM realisation data of Rp1.714 trillion. The 2024 commitments will enter as phased realisations over 2025–2029, as investors complete permitting and begin physical construction.