A Promising Start to Indonesia’s Investment Performance in Q1 2025 Indicates Growing Investor Confidence
Wednesday, 28 May 2025
Jakarta Investment Centre
3 days
Indonesia has entered 2025 with encouraging momentum, marked by an investment realization of Rp 465.2 trillion in the first quarter (Q1). This figure represents 24.4% of the national investment target of Rp 1,905.6 trillion for the year. The Q1 2025 performance also marks a 15.9% year-on-year (YoY) increase compared to the same period in 2024, which totalled Rp 401.5 trillion. Furthermore, on a quarter-on-quarter (QoQ) basis, it increased by 2.7% from Rp 452.8 trillion in Q4 2024. These figures show strong investor confidence in Indonesia, both foreign and domestic, indicating a long-term commitment to Indonesia's economic development. The Minister of Investment and Downstream Industry and Head of the Indonesia Investment Coordinating Board emphasized that such investments are strategic decisions that reflect trust in the country’s future growth prospects (Mawang, 2025).
Following this strong start earlier this year, investment realization in Q1 2025 was driven by nearly equal contributions from both Foreign Direct Investment and Domestic Direct Investment. FDI contributed Rp 230.4 trillion, or 49.5% of the total, while DDI contributed Rp 234.8 trillion, or 50.5%. Both FDI and DDI also achieved year-on-year (YoY) growth, with FDI increasing by 12.7% and DDI rising by 19.1% compared to the same period in 2024. This overall performance in Q1 reflects continued positive sentiment among both investor groups throughout the year.
In terms of regional distribution, Jakarta emerged as the top investment destination in Q1 2025, attracting Rp 69.8 trillion, or 15% of the national total from both FDI and DDI. This strong performance demonstrates Jakarta’s ongoing efforts to always improve the ease of doing business, particularly by simplifying licensing processes and providing reliable infrastructure to support investment activities within the city (Junida, 2025). West Java was close behind, attracting Rp 68.5 trillion in investment, representing 14.7% of the national total. This was followed by East Java with Rp 36.0 trillion, Central Sulawesi coming in fourth with Rp 32.7 trillion, and Banten in the top five with Rp 31.1 trillion. This regional breakdown of investment realization in Q1 2025 highlights how investment across these regions has contributed to economic development in various parts of Indonesia.
Based on the sector, investment realization in Q1 2025 highlights the strategic industries that continue to drive Indonesia’s economic transformation. The Basic Metal, Metal Goods, except Machineries and Equipments Industry, recorded the highest investment at Rp 67.3 trillion, representing 14.5% of the total investment. This was followed by the transportation, warehousing, and telecommunications sector, which attracted Rp 66.5 trillion. In third place, the mining sector attracted Rp 48.6 trillion, while other services contributed Rp 41.0 trillion. Completing the top five, the housing, industrial estate, and office building sector secured Rp 37.5 trillion in investment. The sectoral distribution of investment in Q1 2025 shows that several key industries continue to play an important role in supporting Indonesia’s economic growth.
To conclude, the investment performance in Q1 2025 sets a strong foundation for Indonesia’s economic outlook this year. The positive growth in investment, both quarter on quarter and year on year, compared to the same period in 2024, affirms the confidence of domestic and foreign investors in Indonesia’s investment climate. With this achievement, the government remains optimistic about reaching this year’s national investment target.
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