Investment Minister Highlights Growing Role of Domestic Investors Amid Global Geopolitical Tensions
JAKARTA — Investment and Downstreaming Minister/BKPM Head Rosan Roeslani has highlighted the impact of global geopolitical tensions on worldwide investment flows. Amid the prevailing uncertainty, Rosan said the role of domestic investors has become increasingly important and strategic for the national economy.
"It is undeniable that rising geopolitical tensions are affecting investment across the world," Rosan said at a press conference on second-quarter 2025 investment realisation at the Ministry of Investment and Downstreaming/BKPM office in South Jakarta on Tuesday (29/7/2025).
The Danantara CEO said Indonesia is fortunate to have a strong domestic investor base. Rosan noted that local business players are now more confident and actively increasing their investments domestically.
"Thankfully, amid these heightened geopolitical tensions, domestic and local investors possess considerable strength. They also wish to increase their investment role in Indonesia, because the calculations are clear and the potential is there," Rosan said.
The government, Rosan stated, is firmly prioritising domestic investors. This step was taken to ensure national business players also benefit from development outcomes and economic growth within the country.
"We are certainly giving priority to domestic investors as well, so they can invest in Indonesia. We want domestic investors to enjoy a greater share of the results available in Indonesia," Rosan continued.
Rosan also emphasised the importance of synergy among business players, including the role of Danantara as a platform supporting the financing of national strategic projects. He said this synergy is capable of boosting the confidence of local investors to continue contributing amid global uncertainty.
"With Danantara's synergy in this regard, we can see that it generates greater confidence," Rosan said.
Based on second-quarter and first-half 2025 investment realisation figures, domestic direct investment (PMDN) was dominant. Rosan reported that second-quarter 2025 PMDN reached Rp275.5 trillion (57.7 per cent), exceeding foreign direct investment (PMA) of Rp202.2 trillion (42.3 per cent).
Meanwhile, PMDN for the first half of the year stood at Rp510.3 trillion (54.1 per cent) compared with PMA of Rp432.6 trillion (45.9 per cent).
Rosan noted that the regional distribution between Java and outside Java was relatively balanced, at Rp466.9 trillion (49.5 per cent) for Java and Rp476.0 trillion (50.5 per cent) for outside Java.
"Thankfully, we can see that domestic investment has its own strength, because they also provide high added value," Rosan said.
"It is undeniable that rising geopolitical tensions are affecting investment across the world," Rosan said at a press conference on second-quarter 2025 investment realisation at the Ministry of Investment and Downstreaming/BKPM office in South Jakarta on Tuesday (29/7/2025).
The Danantara CEO said Indonesia is fortunate to have a strong domestic investor base. Rosan noted that local business players are now more confident and actively increasing their investments domestically.
"Thankfully, amid these heightened geopolitical tensions, domestic and local investors possess considerable strength. They also wish to increase their investment role in Indonesia, because the calculations are clear and the potential is there," Rosan said.
The government, Rosan stated, is firmly prioritising domestic investors. This step was taken to ensure national business players also benefit from development outcomes and economic growth within the country.
"We are certainly giving priority to domestic investors as well, so they can invest in Indonesia. We want domestic investors to enjoy a greater share of the results available in Indonesia," Rosan continued.
Rosan also emphasised the importance of synergy among business players, including the role of Danantara as a platform supporting the financing of national strategic projects. He said this synergy is capable of boosting the confidence of local investors to continue contributing amid global uncertainty.
"With Danantara's synergy in this regard, we can see that it generates greater confidence," Rosan said.
Based on second-quarter and first-half 2025 investment realisation figures, domestic direct investment (PMDN) was dominant. Rosan reported that second-quarter 2025 PMDN reached Rp275.5 trillion (57.7 per cent), exceeding foreign direct investment (PMA) of Rp202.2 trillion (42.3 per cent).
Meanwhile, PMDN for the first half of the year stood at Rp510.3 trillion (54.1 per cent) compared with PMA of Rp432.6 trillion (45.9 per cent).
Rosan noted that the regional distribution between Java and outside Java was relatively balanced, at Rp466.9 trillion (49.5 per cent) for Java and Rp476.0 trillion (50.5 per cent) for outside Java.
"Thankfully, we can see that domestic investment has its own strength, because they also provide high added value," Rosan said.