Q1 2026 Investment Realisation Grows 7.2%, Here Are the Drivers
Investment realisation in the first quarter of 2026 showed strong growth. In the first three months of the year, the value of investments entering Indonesia reached Rp 498.8 trillion.
Based on data from the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM), on an annual basis, investment realisation grew 7.2% compared to the same period last year. This achievement equates to 24.4% of the 2026 investment target of Rp 2,004.1 trillion.
In terms of investment sources, the composition of foreign investment (PMA) and domestic investment (PMDN) was relatively balanced. PMA in Q1 2026 was recorded at Rp 250 trillion or 50.1%, slightly higher than PMDN which reached Rp 248.8 trillion or 49.9%.
The distribution of investments in the first three months of this year also began to show evenness, with investments outside Java reaching Rp 251.3 trillion or 50.4%, slightly larger than on Java island at Rp 247.5 trillion.
From the business sector perspective, the basic metals and metal goods industry still dominated with a value of Rp 69.4 trillion. This was followed by the other services sector at Rp 64.2 trillion.
Meanwhile, the housing, industrial estates, and office sector was recorded at Rp 48.4 trillion. There was also growth in investment in the transportation and warehousing sector at Rp 45.4 trillion.
Domestic Investment Continues to Grow
Executive Director of the Center of Reform on Economics (CORE) Indonesia, Mohammad Faisal, said this is a fairly high achievement compared to previous years. Especially from domestic investment or PMDN.
“Indeed, this investment, if we look at investments in purchasing capital goods both by the government and private sector, has experienced an increase. In terms of classification, there is a lot of PMDN. Domestic investment in particular, and that trend has started from 2025. PMA actually has more limited interest although there is still additional foreign investment in sectors related to downstreaming, but generally PMA is somewhat limited, but PMDN is indeed rising,” Faisal told detikcom on Saturday (2/5/2026).
In this regard, he opined that the growth in PMDN realisation was largely driven by the implementation of President Prabowo Subianto’s programmes. This is evident from the high investment in the property sector (housing, industrial estates, and offices) and machinery purchases.
“My suspicion is that it is indeed triggered by the government’s priority programmes, MBG, then the Red White Village Cooperative. So, if we look here, that’s why the high investment is also in construction, yes, besides machinery as well,” Faisal explained.