Japan Grows More Active in Investing in Indonesia
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) recorded that Japanese investment in Indonesia continued to strengthen in the first half of 2026. The Land of the Rising Sun became the fourth-largest foreign investor, with realised capital investment reaching US$1.9 billion, contributing 6.2% to total foreign direct investment (FDI).
Deputy for Investment Climate Development at the Ministry of Investment and Downstreaming/BKPM, Riyatno, stated that the increasing trend of Japanese investment reflects the strengthening economic relationship between the two countries. Japan’s position as the fourth-largest foreign investor in the first half of 2026 is evidence of growing investor confidence in Indonesia’s investment climate.
“This partnership continues to show a strengthening trend, and in the first half of 2026, Japan ranked as the fourth-largest investor in Indonesia with a realisation of US$1.9 billion or contributed 6.2% to total foreign direct investment,” Riyatno said at the launch of a book on the Impact of the Indonesian Pavilion at the World Expo in Osaka, Japan in 2025, in Jakarta, as quoted from Antara on Wednesday (29/7/2026).
“This figure is not merely a statistic, but reflects the trust that has grown from a long-standing partnership,” he added.
Overall, the Ministry of Investment and Downstreaming/BKPM recorded total investment realisation for January-June 2026 at Rp 1,010.6 trillion. Of this amount, foreign direct investment (FDI) realisation reached Rp 507.6 trillion, while domestic direct investment (PMDN) was Rp 502.9 trillion.
Riyatno said the government continues to leverage various international events to expand opportunities for foreign investment inflows into Indonesia. One such event was Indonesia’s participation in the World Expo 2025 Osaka, which generated potential cooperation and investment worth US$28.9 billion.
Of this total potential, the green industry and downstreaming sectors dominated with investment commitments of around US$22.3 billion. “For us, this is not just about introducing products, it is a manifestation of capital partnership,” Riyatno said.
According to him, the presence of the Indonesian Pavilion at the event not only served as a means of investment promotion but also strengthened bilateral relations between Indonesia and Japan while opening new cooperation opportunities with Japanese businesses. Furthermore, this step is expected to become a stronger foundation for increasing investment between the two countries in the future.
“This momentum is in line with the direction we firmly uphold at the Ministry of Investment and Downstreaming, namely encouraging quality and sustainable investment, investment that creates added value, opens up jobs, and ensures benefits are felt equitably, and is expected to open wider sustainable investment opportunities,” Riyatno said.