Foreign investment plays a critical role in assessing a region's economic appeal. It not only brings capital inflows but also contributes to job creation, industrial development, and the national economic structure.

The Investment Coordinating Board (BKPM) recorded the top provinces with the highest realization of foreign direct investment (FDI), reflecting the regions’ growing economic significance.

West Java Tops the List with Nearly US$4 Billion in FDI

West Java recorded the highest foreign investment, reaching US$3.973 billion. Central Sulawesi followed with US$3.746 billion. The capital, DKI Jakarta, ranked third with US$3.152 billion.

North Maluku secured fourth place with a total of US$2.514 billion in foreign investment, demonstrating strong investor interest beyond the main economic hubs.

Central and Eastern Provinces Attract Strong Investment

Central Java recorded US$1.601 billion, while Banten received US$1.592 billion. East Java attracted US$1.478 billion. The Riau Islands posted US$1.242 billion in foreign investment.

Bali secured US$912 million, and Central Papua received US$901 million, completing the list of the top ten provinces with the highest foreign investment during the period.

Foreign Investment Supports Employment and Industrial Growth

The size of these investments indicates global investor trust in Indonesia’s economic potential. The primary objectives of these investments include job creation, production capacity expansion, and strengthening industrial supply chains.

Foreign capital is also expected to support infrastructure development, enhance the added value of natural resources, and accelerate digital transformation in multiple sectors.

FDI continues to serve as a key instrument in boosting both regional and national economic growth. The government expects increased collaboration between central and local authorities, along with investors, to ensure a more even and sustainable distribution of investment benefits.

PHOTO: FREEPIK

This article was created with AI assistance.