Indonesian Political, Business & Finance News

West Java Tops Foreign Direct Investment Destinations with US$2.2 Billion in Q1 2025

| Source: GALERT
Jakarta, CNBC Indonesia — The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) recorded foreign direct investment (FDI) of Rp230.4 trillion, or 49.3% of total realised investment. Meanwhile, domestic direct investment stood at Rp234.8 trillion, or 50.5% of total realised investment. FDI increased by 12.7% in the first quarter of 2025.

By location, BKPM recorded that West Java was the top destination for FDI, with total realised investment of US$2.2 billion. Central Sulawesi came second with US$1.9 billion, followed by Jakarta in third place with US$1.7 billion. North Maluku and Banten occupied the fourth and fifth positions with US$1.4 billion and US$1 billion respectively.

Minister of Investment and Downstreaming/Head of BKPM Rosan P. Roeslani said West Java was a favoured investment destination due to its numerous industrial parks and electric vehicle investments, particularly in the Karawang area.

"Compared to other regions, Karawang has very significant investment levels," Rosan said at a press conference on Tuesday.

Karawang is one of the areas with the highest realised investment in West Java, ranking second only after Bekasi Regency. Realised investment in Karawang in 2024 reached Rp68.5 trillion, exceeding the target set by the central government.

Karawang is well known as an automotive industry hub and hosts various types of factories, including food, automotive, electronics, chemical and other manufacturing plants. Major factories in Karawang include PT Toyota Motor Manufacturing Indonesia, PT Astra Daihatsu Motor, PT GS Battery, PT Honda Prospect Motor (HPM) and PT Yamaha Motor Manufacturing West Java.
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