Looking at the Direction of Indonesia's Foreign Direct Investment (FDI) Realization for the 2025 Period

The Ministry of Investment/BKPM noted that the realization of Foreign Investment (FDI) per quarter throughout 2025 was still unstable. The value reached US$14.4 billion in the first quarter, then fell to US$12.6 billion in the second quarter, before increasing again to US$13.3 billion in the third quarter.

Throughout the observation period, Singapore was recorded as the largest investor with a contribution of nearly 30% of the total FDI value. In nominal terms, Singapore's investment reached US$4.58 billion in the first quarter, then fell to US$4.20 billion in the second quarter, and declined again in the third quarter to US$3.82 billion.

Hong Kong ranked second, recording an upward trend in investment in all three quarters. FDI from Hong Kong rose from US$2.23 billion in the first quarter to US$2.35 billion in the second quarter, reaching US$2.69 billion in the third quarter. Not many countries experienced consistent investment growth like Hong Kong during this period.

Below the top two countries are several other Asian countries, such as China, Japan, and South Korea. Meanwhile, outside Asia, the United States has consistently been among the top five countries contributing the most FDI. In this group of investors, the value of investment is generally in the range of hundreds of millions to more than one billion US dollars per quarter.

BKPM also released details of the investment sectors and their derivatives. The metal industry, which is included in the secondary sector, was recorded as the largest contributor consistently in the three quarters, with investment values ranging from US$3.5 to US$3.65 billion. Below that, investment flowed into the mining sector, which reached US$1.09 billion in the third quarter, followed by the chemical industry at US$1.07 billion, and the transportation sector at US$0.76 billion. In terms of value distribution, the mineral-based sector dominated foreign investment flows throughout the observation period.

Quoted from Kompas, which interviewed Minister of Investment/Head of BKPM Rosan Roeslani, the government stated Indonesia's readiness to respond to various foreign investment challenges. These efforts are carried out through the creation of legal certainty and the formulation of regulations that support the investment climate.

One of the steps taken is the revision of Government Regulation Number 5 of 2021 with the aim of simplifying the business licensing process. In addition, the government is also strengthening communication of investment policies to global investors, including through more proactive dissemination of information regarding investment potential in Indonesia.