Indonesian Political, Business & Finance News

Rosan: Rp511.8 Trillion Investment Absorbs Over 742,000 Workers

| | Source: VIBIZMEDIA.COM Translated from Indonesian | Investment
Rosan: Rp511.8 Trillion Investment Absorbs Over 742,000 Workers
Image: VIBIZMEDIA.COM

Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani reported that investment realisation in the second quarter of 2026 reached Rp511.8 trillion. This figure grew by 7.1 per cent compared to the same period the previous year and is equivalent to 25.1 per cent of the 2026 national investment target.

The achievement was conveyed by Rosan at the Presidential Palace in Jakarta on Thursday (16/7/2026), following a report on investment developments to President Prabowo Subianto. He stressed that long-term investor commitment to Indonesia remains strong, particularly from key partner countries such as China, Japan, and South Korea.

According to Rosan, Indonesia is still viewed as a promising investment destination with competitive returns. The government continues to improve the investment climate through policies that provide legal certainty and ease of licensing, thereby receiving a positive response from business actors.

During the period, investment realisation also absorbed 742,293 workers, an increase of 5.1 per cent. The composition of domestic direct investment (PMDN) and foreign direct investment (PMA) was relatively balanced, with PMDN at 49.6 per cent and PMA at 50.4 per cent.

In terms of regional distribution, the contribution of investment between Java and outside Java is also increasingly even. Rosan noted this trend is positive and is expected to continue to develop so that the investment potential in various regions can be maximised.

For PMA, North Maluku recorded a significant surge and became the main destination with a realisation of Rp39.5 trillion, followed by DKI Jakarta, West Java, Central Sulawesi, and East Java. Meanwhile, from the PMDN side, DKI Jakarta still dominated with Rp58.6 trillion, followed by West Java and East Java.

Based on business sectors, the five largest sub-sectors in the second quarter of 2026 included the base metals and non-machinery metal goods industry at Rp81 trillion, transportation, warehousing, and telecommunications at Rp57.3 trillion, mining at Rp53.1 trillion, other services, and trade and repair at Rp40.8 trillion.

Rosan also revealed a shift in the source of foreign investment. For the first time in a decade, Hong Kong occupied the top position as the largest source of investment in Indonesia in the second quarter of 2026, followed by Singapore, China, Japan, and Malaysia.

This achievement shows that Indonesia remains a prime investment destination in the region. With a continuously improving business climate, increasingly strong regulatory certainty, and the equitable distribution of investment to various regions, the government is optimistic that investment will continue to be the main driver of economic growth and job creation.

View JSON | Print