Property Sector Ranks Fifth in Investment Realisation During First Quarter of 2025
Property has entered the top five sub-sectors with the highest investment realisation in the first quarter of 2025. The property sector in question encompasses housing, industrial estates, and office buildings.
According to data from the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM), the housing, industrial estate, and office building sector ranked fifth among sub-sectors with the highest realisation.
Property recorded investment of Rp 37.5 trillion, equivalent to 8.1 per cent of Indonesia's total investment of Rp 465.2 trillion. Meanwhile, the sub-sector with the highest investment realisation in the first quarter was the basic metals, metal goods, non-machinery and equipment industry, reaching Rp 67.3 trillion or 14.5 per cent of total investment.
Toll Roads and Property Drive Domestic Investment Growth
Domestic investment outperformed foreign investment in the first quarter of 2025. Total investment realisation in Indonesia during the quarter reached Rp 465.2 trillion, growing 15.9 per cent year-on-year.
Of that total, Domestic Direct Investment (PMDN) contributed 50.5 per cent or Rp 234.8 trillion, growing 19.1 per cent year-on-year. Meanwhile, Foreign Direct Investment (PMA) contributed 49.5 per cent or Rp 230.4 trillion, growing 12.7 per cent year-on-year.
Minister of Investment and Downstreaming/Head of BKPM Rosan Roeslani said this achievement demonstrated a positive trend in domestic investment growth.
"This is quite interesting because usually foreign investment is slightly higher than domestic investment, but in the first quarter domestic investment's contribution was slightly higher than foreign investment," Rosan said at a press conference broadcast on the Ministry of Investment and Downstreaming/BKPM YouTube channel on Tuesday (29 April 2025).
He added that the strong domestic investment performance was not due to declining foreign investment, but rather more aggressive PMDN growth.
"This occurred not because foreign investment fell, but because domestic investment increased far more sharply compared to the rise in foreign investment," he said.
According to Rosan, the increase in domestic investment was driven by two main factors. First, the acceleration of infrastructure development, particularly toll road projects in North Sumatra and Riau. Second, the entry of new investment from the real estate and property sector.
"So those two factors are what caused our domestic investment to increase more sharply," Rosan concluded.
According to data from the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM), the housing, industrial estate, and office building sector ranked fifth among sub-sectors with the highest realisation.
Property recorded investment of Rp 37.5 trillion, equivalent to 8.1 per cent of Indonesia's total investment of Rp 465.2 trillion. Meanwhile, the sub-sector with the highest investment realisation in the first quarter was the basic metals, metal goods, non-machinery and equipment industry, reaching Rp 67.3 trillion or 14.5 per cent of total investment.
Toll Roads and Property Drive Domestic Investment Growth
Domestic investment outperformed foreign investment in the first quarter of 2025. Total investment realisation in Indonesia during the quarter reached Rp 465.2 trillion, growing 15.9 per cent year-on-year.
Of that total, Domestic Direct Investment (PMDN) contributed 50.5 per cent or Rp 234.8 trillion, growing 19.1 per cent year-on-year. Meanwhile, Foreign Direct Investment (PMA) contributed 49.5 per cent or Rp 230.4 trillion, growing 12.7 per cent year-on-year.
Minister of Investment and Downstreaming/Head of BKPM Rosan Roeslani said this achievement demonstrated a positive trend in domestic investment growth.
"This is quite interesting because usually foreign investment is slightly higher than domestic investment, but in the first quarter domestic investment's contribution was slightly higher than foreign investment," Rosan said at a press conference broadcast on the Ministry of Investment and Downstreaming/BKPM YouTube channel on Tuesday (29 April 2025).
He added that the strong domestic investment performance was not due to declining foreign investment, but rather more aggressive PMDN growth.
"This occurred not because foreign investment fell, but because domestic investment increased far more sharply compared to the rise in foreign investment," he said.
According to Rosan, the increase in domestic investment was driven by two main factors. First, the acceleration of infrastructure development, particularly toll road projects in North Sumatra and Riau. Second, the entry of new investment from the real estate and property sector.
"So those two factors are what caused our domestic investment to increase more sharply," Rosan concluded.