Executive Summary

Key insights and market outlook

Indonesia recorded Rp1,931.2 trillion in investments during 2025, exceeding the target of Rp1,905.6 trillion ¹

. The investment realization was dominated by domestic investment (PMDN) at 53.4% while foreign investment (PMA) contributed 46.6% ³. The investments created 2.7 million jobs, marking a 10.4% increase year-on-year ⁴.

Full Analysis

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Deep Dive Analysis

Indonesia's 2025 Investment Realization Exceeds Target at Rp1,931.2 Trillion

Record-Breaking Investment Achievement

Indonesia achieved a significant milestone in 2025 with total investment realization reaching Rp1,931.2 trillion, surpassing the annual target of Rp1,905.6 trillion by 1.3% ¹

. This performance represents a 12.7% year-on-year growth compared to the previous year. The investment realization was led by domestic investment (PMDN) which contributed Rp1,030.3 trillion (53.4%), while foreign investment (PMA) amounted to Rp900.9 trillion (46.6%) ³.

Sectoral and Regional Distribution

The investment was distributed relatively evenly between Java and outside Java, with Rp940 trillion (48.7%) in Java and Rp991.2 trillion (51.3%) outside Java ¹

. Notably, investments in downstream activities reached Rp582.1 trillion, accounting for 30.2% of total investment and showing significant growth ².

Employment Impact

The substantial investment inflow had a positive impact on employment, creating 2,710,532 jobs throughout 2025, representing a 10.4% increase from the previous year ⁴

. The fourth quarter alone contributed 754,186 jobs from Rp496.9 trillion investment. This job creation performance demonstrates the effectiveness of investment in driving economic growth and employment opportunities.

Source Countries

The investment inflow came from various countries, with Singapore leading at US$17.4 billion, followed by Hong Kong at US$10.6 billion, China at US$7.5 billion, and Malaysia at US$4.5 billion ⁶

. Singaporean investments were particularly notable in the basic metal industry and metal products.

Investment Trend Analysis

Menteri Investasi/Kepala BKPM Rosan Roeslani attributed the strong domestic investment growth to the presence of Danantara, stating that domestic investment has accelerated significantly ³

. The growth in domestic investment outpaced foreign investment, with Rosan emphasizing that it wasn't a slowdown in foreign investment but rather an acceleration of domestic investment ⁵.

References