Indonesia’s Investment Performance in Q2 2025 Sustains Strong Growth

Indonesia recorded another quarter of solid investment performance in the second quarter (Q2) of 2025 (April–June), reaffirming its position as a resilient and attractive investment destination amid persistent global challenges. During this period, realized investment reached IDR 477.7 trillion, an 11.5% year-on-year (YoY) increase from IDR 428.4 trillion in Q2 2024, and a 2.7% quarter-on-quarter (QoQ) increase compared to IDR 465.2 trillion in Q1 2025. 

Furthermore, cumulative investment realization in the first semester of 2025 (January–June) reached IDR 942.9 trillion, representing 49.5% of the annual target of IDR 1,905.6 trillion. This progress underscores Indonesia’s strong economic fundamentals, supported by steady domestic consumption, controlled inflation, and growth in key sectors such as manufacturing, infrastructure, and renewable energy.

Minister of Investment and Downstream Industry/Chairman of BKPM emphasized that this performance reflects the continued trust of both domestic and foreign investors. “Business confidence in Indonesia remains very high, with both foreign and domestic investors consistently demonstrating strong commitment to investing in the country. Investment plays a key role as a primary pillar in achieving the 8% economic growth target by 2029. At present, it is the second-largest contributor to economic growth after household consumption.”

Investment realization in Q2 2025 was supported by both Domestic Direct Investment (DDI) and Foreign Direct Investment (FDI). DDI reached IDR 275.5 trillion (57.7%), while FDI contributed IDR 202.2 trillion (42.3%). For the first semester, DDI reached IDR 510.3 trillion, while FDI recorded IDR 432.6 trillion, reflecting a balanced mix that ensures stability in the investment landscape.

FDI inflows in Q2 were dominated by key sectors such as the Basic Metal and Metal Goods Industry, Except Machineries and Equipment Industry US$ 3.6 billion (28.8%), Mining US$ 1.3 billion (10.0%), Other Services US$ 1.1 billion (8.8%), Chemical and Pharmaceutical Industry US$ 0.7 billion (5.1%), and Housing, Industrial Estates, and Offices building US$ 0.6 billion (4.9%). The largest FDI contributions came from Singapore US$ 4.2 billion (33.3%), Hong Kong US$ 2.3 billion (18.6%), China US$ 1.8 billion (14.4%), the United States US$ 0.8 billion (6.0%), and Malaysia US$ 0.7 billion (5.6%). 

Alongside FDI, DDI also made a strong contribution in Q2 2025, with the Transportation, Warehouse, and Telecommunication sector recording the highest realization at IDR 35.3 trillion (12.8%), followed by Mining at IDR 33.5 trillion (12.2%) and Trade and Reparation at IDR 32.2 trillion (11.7%), while Housing, Industrial Estates, and Office Building projects reached IDR 27.6 trillion (10.0%) and Other Services recorded IDR 27.0 trillion (9.8%).

Investment distribution in Q2 2025, combining both FDI and DDI, highlighted Jakarta’s role as one of the country’s top investment destinations. The city recorded IDR 71.1 trillion (14.9%), second only to West Java at IDR 72.5 trillion (15.2%), while other leading provinces included East Java at IDR 38.6 trillion (8.1%), Central Sulawesi at IDR 31.6 trillion (6.6%), and Banten at IDR 29.7 trillion (6.2%). Jakarta’s position was particularly prominent in DDI, where it ranked first nationwide with IDR 48.2 trillion (17.5%), ahead of West Java at IDR 43.7 trillion (15.9%). In terms of FDI, Jakarta attracted USD 1.4 billion (11.3%), reflecting its continued relevance for global investors.

The effect of this investment performance was reflected in the labour market, with Q2 2025 generating substantial employment opportunities. Investment realization in Q2 2025 created jobs for 665,764 workers, consisting of 447,486 from DDI projects and 218,278 from FDI projects. Cumulatively, investment activities in the first semester of 2025 absorbed 1,259,868 workers, a 2.8% increase YoY compared to the same period in 2024. These figures highlight the role of sustained investment in creating jobs and supporting inclusive economic growth.

To conclude, Indonesia’s investment performance in Q2 2025 reflects sustained growth and resilience amid global economic challenges. Supported by balanced contributions from both foreign and domestic investment, as well as continued expansion across key sectors, investment has also played a vital role in job creation, absorbing more than 1.2 million workers in the first semester of 2025. These achievements underscore Indonesia’s strong fundamentals and highlight its trajectory toward long-term, inclusive, and sustainable economic development.

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