Indonesia's investment climate continued to show resilience and positive momentum in the first quarter of 2026. According to data released by the Ministry of Investment and Downstream Industry/Indonesia Investment Coordinating Board (BKPM), total investment realization in Q1 2026 reached IDR 498.8 trillion, reflecting a 7.2% year-on-year (YoY) increase compared to the same period in 2025 and a 0.4% quarter-on-quarter (QoQ) growth from Q4 2025. This result represents 24.4% of the national investment target of IDR 2,041.3 trillion for 2026, demonstrating a solid start to the year and sustained investor confidence in Indonesia's economic fundamentals.

The positive start to 2026 indicates that investment activity in Indonesia continues to grow, supported by a well-balanced composition. In the first quarter, Foreign Direct Investment (FDI) reached IDR 250.0 trillion, representing 50.1% of total investment realization, while Domestic Direct Investment (DDI) reached IDR 248.8 trillion, contributing 49.9%. This balanced composition shows that both domestic and international investors continue to play an important role in supporting Indonesia’s economic development.

Regionally, Jakarta emerged as the largest investment destination in Q1 2026, with combined FDI and DDI totalling IDR 78.7 trillion, equivalent to 15.8% of the national total. This marks a notable milestone, as Jakarta reclaimed the top position after consistently ranking among the leading contributors in recent years. Jawa Barat followed closely in second place at IDR 76.8 trillion (15.4%), with Banten at IDR 34.4 trillion (6.9%), Jawa Timur at IDR 32.6 trillion (6.5%), and Sulawesi Tengah at IDR 32.1 trillion (6.4%) completing the top five. Overall, this performance highlights the increasingly even distribution of investment across regions, reflecting stronger regional participation in driving Indonesia’s economy.

Furthermore, based on sectoral performance, the Basic Metal, Metal Goods, Non-Machinery and Equipment Industry led sectoral realization, with combined DDI and FDI reaching IDR 69.4 trillion (13.9%). This was followed closely by the Other Services sector at IDR 64.2 trillion (12.9%) and the Mining sector at IDR 51.9 trillion (10.4%). Other contributing sectors included Housing, Industrial Estates and Offices at IDR 48.0 trillion, as well as Transportation, Warehousing and Telecommunications at IDR 45.4 trillion.

Alongside capital investment, investment activities in the first quarter of 2026 also played a significant role in employment creation. A total of 706,569 Indonesian workers were absorbed during the quarter, representing an 18.9% increase compared to the same period last year. Within this figure, 462,083 were employed through DDI-linked projects and 244,486 through FDI-linked projects. This strong employment outcome indicates the broader impact of investment, not limited to financial returns but also including job creation, skills development, and wider economic participation.