Indonesian Political, Business & Finance News

Indonesia's Q1 2025 Investment Reaches Rp 465.2 Trillion, Up 15.9% Year-on-Year

| Source: GALERT
Jakarta - Indonesia's investment realisation in the first quarter of 2025 reached Rp 465.2 trillion. According to Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani, this achievement is equivalent to 24.4% of this year's investment target of Rp 1,905.6 trillion.

On a year-on-year basis, investment in the first three months of 2025 rose 15.9% from the same period the previous year of Rp 401.5 trillion. Meanwhile, on a quarter-to-quarter basis, investment realisation increased 2.7% compared to the fourth quarter of 2024, which stood at Rp 452.8 trillion.

"The investment achievement for the first quarter of 2025 reached Rp 465.2 trillion. This is approximately 24.4% of the 2025 target. This is very much in line with our expectations. And most importantly, the increase was 15.9% year-on-year compared to the previous year," said Rosan at a press conference some time ago, quoted on Thursday (15/5/2025).

In detail, the investment comprised domestic direct investment (PMDN) of Rp 234.8 trillion or 50.5%, whilst foreign direct investment (PMA) accounted for 49.5% or Rp 230.4 trillion, meaning it was lower than domestic investment.

"This occurred not because foreign investment declined, but because domestic investment increased far more sharply compared to foreign investment. If we look at the increase in domestic investment, it was 19.1% from the previous year, whilst foreign investment also continued to grow — it did increase, rising 12.7%. Both continued to increase well," he explained.

Rosan explained that one of the contributing factors was improved infrastructure, such as toll road construction, particularly in the North Sumatra and Riau regions, which drove investment in the real estate and property sector.

In terms of regional investment distribution, investment outside Java reached Rp 235.9 trillion, slightly higher than investment in Java at Rp 229.3 trillion.
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