Indonesian Political, Business & Finance News

Indonesia's Q1 2025 Investment Realisation Reaches Rp465.2 Trillion, Up 15.9% Year-on-Year

| Source: GALERT
A report from the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) states that investment realisation in the first three months of 2025 reached Rp465.2 trillion.

"Investment in the first quarter is in line with the target set by Bappenas and assigned to us. Of the total investment target for 2025 of Rp1,905.6 trillion, in the first quarter, investment that has come in, been realised and disbursed amounts to Rp465.2 trillion, approximately 24.4% of the target," said Minister of Investment and Downstreaming/Head of BKPM Rosan Perkasa Roeslani in a press statement on Wednesday (23/4/2025).

This figure rose 15.9% compared with Q1 2024, which stood at Rp401.5 trillion, and also increased 2.7% quarter-on-quarter. Total employment absorbed reached 594,104 workers, up 8.5% year-on-year.

"This is a very encouraging figure. It also demonstrates that confidence from both the international community and domestically in investing in Indonesia remains well maintained," he said.

In greater detail, approximately 50.5% of investment realisation in Q1 2025 came from domestic investment (PMDN), indicating an increasingly fertile local investment climate in Indonesia. Meanwhile, foreign investors contributed 49.5% of total investment realisation in the same period, amounting to Rp230.4 trillion.

Among foreign investors, Singapore continued to provide the largest contribution. "For the past 10 years, Singapore has been Indonesia's largest investor," said Rosan Roeslani. In Q1 2025, total investment realisation from Singapore reached US$4.6 billion. Hong Kong came second with total investment of US$2.2 billion, followed by China (US$1.8 billion), Malaysia (US$1 billion) and Japan (US$1 billion).

By region, the majority of investment was in Java, reaching Rp229.3 trillion or approximately 49.3% of total incoming investment. This underscores Java's strategic role as a centre of economic activity and growth in Indonesia, although the government must work harder to ensure equitable distribution so that regions outside Java can enjoy equal opportunities. Meanwhile, areas outside Java contributed 50.7% of total investment realisation, amounting to Rp235.9 trillion.

By province, Jakarta still led with total investment realisation of Rp69.8 trillion, equivalent to 15% of the total for the period. West Java followed closely with a contribution of 14.7% or approximately Rp68 trillion. Also from Java, East Java ranked third with total investment reaching Rp36 trillion, followed by Central Sulawesi (Rp32.7 trillion) and Banten (Rp31 trillion).
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