Indonesia Maintains Strong Investment Growth Momentum in Q3 2025

Indonesia’s investment performance continued to demonstrate resilience and positive momentum through the third quarter of 2025, despite escalating global geopolitical uncertainty. According to data released by the Ministry of Investment and Downstream Industry/Indonesia Investment Coordinating Board (BKPM), total investment realization in Q3 2025 reached Rp491.4 trillion, reflecting a 13.9% year-on-year (YoY) compared to the same period in 2024. This performance reflects the continued stability of Indonesia’s investment climate and the government’s consistent efforts to maintain positive economic momentum.

In the third quarter of 2025, investment remained well distributed between Domestic Direct Investment (DDI) and Foreign Direct Investment (FDI). DDI reached Rp279.4 trillion (56.9%), while FDI totalled Rp212.0 trillion (43.1%). This shows that local investors continue to have strong confidence in the economy, while foreign investors remain highly interested in Indonesia’s market potential, reflecting stable and sustained investment growth nationwide. The positive investment performance in the third quarter reflects steady economic growth and brings the country closer to achieving its national investment target of Rp1,905.6 trillion in 2025. Cumulatively, total investment from January to September 2025 reached Rp1,434.3 trillion, or 75.3% of the annual target, demonstrating that investment activities continue to progress in a positive direction.

Regionally, in the third quarter of 2025, DKI Jakarta was among the largest contributors to national investment, with combined DDI and FDI reaching Rp63.3 trillion (12.9%). Jakarta maintained a strong position within the top three contributors to national investment realization in 2025, reflecting its continued role as one of Indonesia’s main economic centers. West Java led overall with Rp77.1 trillion (15.7%), followed by other key provinces such as Central Sulawesi (Rp33.4 trillion, 6.8%), Banten (Rp30.8 trillion, 6.3%), and East Java (Rp30.4 trillion, 6.2%).

This strong regional performance was supported by steady investment growth across several key sectors that continue to drive Indonesia’s economic growth. In the third quarter of 2025, the Basic Metal, Metal Goods, Except Machineries and Equipment Industry reached Rp62.0 trillion (12.6%), followed by the mining sector with Rp 55.9 trillion (11.4%). The transportation, warehouse, and telecommunications sector also recorded solid performance, reaching Rp52.6 trillion (10.7%), while the other services contributed Rp44.3 trillion (9.0%), followed by the trade and reparation sector with Rp34.5 trillion (7.0%).

Alongside strong performance across sectors, foreign investment continued to play an important role in supporting Indonesia’s overall economic growth. In the third quarter of 2025, Singapore remained the largest source of FDI, contributing USD 3.8 billion (28.8%), followed by Hong Kong with USD 2.7 billion (20.3%), and China with USD 1.9 billion (14.1%). Malaysia and the United States also ranked among the top five contributors, investing USD 1.0 billion (7.4%) and USD 0.8 billion (5.8%).

Furthermore, investment activities in Q3 2025 contributed to the absorption of 696,478 direct workers nationwide, representing a 7.1% increase compared to the same period last year. This increase reflects the positive impact of sustained investment growth on Indonesia’s overall economic development and employment creation.

Overall, the third quarter of 2025 reflected Indonesia’s continued ability to maintain strong and balanced investment growth amid global economic uncertainties. The steady increase in both domestic and foreign investment demonstrates sustained confidence in the country’s economic fundamentals and the government’s ongoing efforts to create a more attractive and stable investment climate. With contributions coming from diverse regions and key sectors, as well as strong participation from leading global investors, Indonesia remains on track to achieve its national investment target for 2025. 

Reference

BKPM Press Release https://bit.ly/Final-PR-Triwulan-3-2025