According to reporting from Tempo, the Prasasti Center for Policy Studies assesses that Indonesia’s investment realization, which reached IDR 477.7 trillion in the second quarter, provides a positive signal amidst global uncertainty. The Investment Coordinating Board (BPKM) recorded a 2.7 percent increase from IDR 465.2 trillion in the previous quarter. Total investment throughout the first half of this year reached IDR 942.9 trillion, nearly 50 percent of the annual target of IDR 1,905.6 trillion.
According to Prasasti Research Director Gundy Cahyadi, this data demonstrates the increasingly solid resilience of the national economy. “Amidst challenging global dynamics, the fact that Indonesia has been able to maintain this investment flow reflects investor confidence in the long-term prospects of our economy,” he said in an official statement quoted on Saturday (2/8/25.)
By sector, the base metals industry was the largest contributor, with investment reaching IDR 67.1 trillion, or 14.1 percent of total investment. This was followed by the mining sector with IDR 53.6 trillion; The transportation, warehousing, and telecommunications sector contributed IDR 44.2 trillion; and the trade and repair sector IDR 40 trillion. Gundy believes this trend demonstrates the ongoing transformation of the economic structure. While downstreaming remains the primary driver, new sectors, such as trade, are emerging, says Tempo.
Gundy also highlighted Foreign Direct Investment (PMA), which decreased by 6.9 percent compared to the same period last year. Of the investment realization in the second quarter, IDR 202.2 trillion came from foreign investors. Meanwhile, domestic investment (PMDN) contributed IDR 275.5 trillion. “Investors are being more cautious in the short term, but they still view Indonesia as a strategic destination,” he said.
Minister of Investment and Downstreaming/Head of the Financial and Development Supervisory Agency (BPKM), Rosan Roeslani, stated that the employment generated from investment in the second quarter of this year reached 665,764 people. “So, this represents the employment created from investment in the second quarter alone,” he said on Tuesday (29/7/25,) as quoted by Antara.
Tempo is reporting that the top five countries realizing foreign investment in the second quarter of 2025 were Singapore (USD 4.2 billion), Hong Kong (USD 2.3 billion), China (USD 1.8 billion), the United States (USD 0.8 billion), and Malaysia (USD 0.7 billion).
Source: Tempo
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