Indonesia's Investment Surge from Hong Kong and Malaysia Traced Back to China and South Korea

The Indonesian government has reported that investment realisation in the first semester of 2026 reached Rp1,010.6 trillion, marking a 7.2% year-on-year increase. Minister of Investment and Downstreaming Rosan Roeslani detailed that domestic investment (PMDN) accounted for Rp502.9 trillion, while foreign direct investment (PMA) contributed Rp507.6 trillion. Hong Kong emerged as the largest source of foreign investment with US$5 billion, followed by Singapore (US$4.2 billion), China (US$1.7 billion), Japan (US$900 million), and Malaysia (US$700 million). However, Minister Rosan clarified that a substantial portion of the capital flows recorded from Hong Kong and Malaysia actually originated from other countries, particularly China and South Korea. He explained that many Chinese investors channel their funds through Hong Kong, while a significant amount of investment entering from Malaysia is ultimately sourced from South Korea. The minister noted that the majority of Hong Kong’s investment was directed towards the mineral downstreaming sector.