Realisation of Rp498 Trillion Investment Proves Downstreaming is Underway
The investment realisation in the first quarter of 2026 serves as a strong indicator of the direction of the downstreaming policy promoted by President Prabowo Subianto, beginning to show tangible results. The government is striving to ensure that natural resources (SDA) are no longer exported in raw form, but instead processed domestically to provide greater added value to the national economy.
The latest data from the Ministry of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) shows that total investment realisation reached Rp498.8 trillion, growing 7.2% year-on-year. Of this amount, the downstreaming sector contributed Rp147.5 trillion, up 8.2% from the same period last year. This figure reflects increasing investor interest in the processing industry, in line with the government’s economic transformation strategy.
Foreign Direct Investment (PMA) dominance was evident again in this period. Its value reached Rp250 trillion, or 50.1% of total investment, slightly surpassing Domestic Investment (PMDN) at Rp248.8 trillion. This condition is seen as an indicator of increasing global investor confidence in Indonesia’s economic policy direction.
“This is a strong signal that the national economic policy is on the right track, while also showing growing investor confidence in Indonesia’s economic transformation agenda,” said Director of NEXT Indonesia Center, Christiantoko, on Thursday, 23 April 2026.
The downstreaming sector absorbs 29.6% of total national investment
According to Christiantoko, the downstreaming sector absorbs 29.6% of total national investment. Of that figure, around 66.7% or Rp98.4 trillion comes from PMA.
“This figure shows that investors are increasingly serious about investing in projects that process raw materials into finished or semi-finished products, in line with the government’s target to reduce dependence on raw material exports,” he said.
The largest contribution in downstreaming comes from the mineral sector with a value of Rp98.3 trillion. Nickel commodities remain the favourite with investment reaching Rp41.5 trillion. In addition, the copper sector recorded Rp20.7 trillion, iron and steel Rp17 trillion, and bauxite Rp13.7 trillion.
“By directing capital to the processing sector, we not only prevent natural resources from leaving in cheap raw form, but also build a more competitive industrial ecosystem for the future,” Christiantoko stated.