Investment Minister Confident Geopolitical Tensions Will Not Affect FDI Flows to Indonesia
JAKARTA — Minister of Investment and Downstreaming cum Head of the Investment Coordinating Board (BKPM) Rosan P. Roeslani is confident that geopolitical tensions between Israel, Iran, and the United States will not affect the flow of investment into Indonesia.
Rosan revealed that the appetite of investors undertaking foreign direct investment (FDI) remains unchanged and high, even amid ongoing global turbulence. The sustained flow of investment is attributed to the fact that the principal countries investing in Indonesia originate from the Asian region, primarily Singapore, China, Hong Kong, Malaysia, Japan, and South Korea.
"I see that the impact [in terms of FDI] has, so to speak, not been felt thus far. Everything is still proceeding as normal," he said when met at the BKPM office on Tuesday (24/6/2025).
The Head of the Daya Anagata Nusantara Investment Management Agency (BPI Danantara) also noted that over the past six months, investment realisation has trended positively, despite global economic turbulence from various sources.
"So for us, there appears to be no significant impact. Everything is fine and progressing well," he added.
Investment realisation through the first quarter of 2025 reached Rp465.2 trillion, recording growth of 15.9% year on year (YoY). Investment realisation also rose 2.7% quarter to quarter (QtQ).
First quarter 2025 investment realisation was equivalent to 24.4% of this year's total investment target of Rp1,905.6 trillion. This means the government still needs to secure Rp1,440.4 trillion more to meet the target, requiring at least Rp480.13 trillion in FDI per quarter for the remainder of the year.
Additionally, Rosan reported that investment realisation outside Java in the first quarter of 2025 reached Rp235.9 trillion, or 50.7% of total investment, whilst investment realisation in Java during the same quarter reached Rp229.3 trillion, or 49.3%.
According to Rosan's records, the incoming investment generated employment absorption of up to 594,104 workers, growing 8.5% YoY.
Meanwhile, conditions for direct investment or FDI are in stark contrast to other forms of investment such as portfolio investments and gold, which have fled to safe haven assets. Gold prices, for instance, have strengthened as rising geopolitical tensions between Iran and Israel have driven a surge in demand for safe haven assets.
Rosan revealed that the appetite of investors undertaking foreign direct investment (FDI) remains unchanged and high, even amid ongoing global turbulence. The sustained flow of investment is attributed to the fact that the principal countries investing in Indonesia originate from the Asian region, primarily Singapore, China, Hong Kong, Malaysia, Japan, and South Korea.
"I see that the impact [in terms of FDI] has, so to speak, not been felt thus far. Everything is still proceeding as normal," he said when met at the BKPM office on Tuesday (24/6/2025).
The Head of the Daya Anagata Nusantara Investment Management Agency (BPI Danantara) also noted that over the past six months, investment realisation has trended positively, despite global economic turbulence from various sources.
"So for us, there appears to be no significant impact. Everything is fine and progressing well," he added.
Investment realisation through the first quarter of 2025 reached Rp465.2 trillion, recording growth of 15.9% year on year (YoY). Investment realisation also rose 2.7% quarter to quarter (QtQ).
First quarter 2025 investment realisation was equivalent to 24.4% of this year's total investment target of Rp1,905.6 trillion. This means the government still needs to secure Rp1,440.4 trillion more to meet the target, requiring at least Rp480.13 trillion in FDI per quarter for the remainder of the year.
Additionally, Rosan reported that investment realisation outside Java in the first quarter of 2025 reached Rp235.9 trillion, or 50.7% of total investment, whilst investment realisation in Java during the same quarter reached Rp229.3 trillion, or 49.3%.
According to Rosan's records, the incoming investment generated employment absorption of up to 594,104 workers, growing 8.5% YoY.
Meanwhile, conditions for direct investment or FDI are in stark contrast to other forms of investment such as portfolio investments and gold, which have fled to safe haven assets. Gold prices, for instance, have strengthened as rising geopolitical tensions between Iran and Israel have driven a surge in demand for safe haven assets.