Indonesia recorded another strong performance in its national investment results. During the third quarter of 2025, investment realization reached IDR 491.4 trillion, growing 13.9% year-on-year and contributing 25.8% of the national investment target for the year. This achievement shows that the business sector continues to view Indonesia as a promising place for growth and investment.

Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani, underlined the importance of ensuring that investment achievements bring real benefits to society.

“What is most important is not only the numbers but also the quality of investment. We ensure that this investment has a positive impact, especially in job creation, and that it remains sustainable to support human resource development in Indonesia,” said Rosan.

Investment performance during the third quarter of 2025 also had a direct impact on employment. A total of 696,478 workers were employed from investment projects, up 7.1% compared to the same period last year. Cumulatively, until September 2025, investment had created 1.95 million jobs across sectors.

Downstreaming Becomes the Main Driver

The government’s downstreaming policy continued to play a major role in achieving investment targets. In the third quarter of 2025, investment in downstreaming sectors reached IDR 150.6 trillion, or 30.6% of total investment, rising 64.6% compared to the same period last year.

The mineral sector contributed the most with IDR 97.8 trillion, followed by plantation and forestry (IDR 35.9 trillion), oil and gas (IDR 15.4 trillion), and fisheries and marine (IDR 1.5 trillion).

Central Sulawesi Province led downstreaming investment with IDR 28.7 trillion, followed by West Java (IDR 15.0 trillion) and North Maluku (IDR 14.3 trillion).

Investment Distribution Becomes More Even

Investment realization in the third quarter also showed a more even distribution between regions. Investment outside Java reached IDR 265.8 trillion or 54.1%, higher than Java’s IDR 225.6 trillion or 45.9%.

The five provinces with the highest investment realization were:

• West Java: IDR 77.1 trillion
• Jakarta: IDR 63.3 trillion
• Central Sulawesi: IDR 33.4 trillion
• Banten: IDR 30.8 trillion
• East Java: IDR 30.4 trillion

The basic metal industry remained the top investment sector with IDR 62.0 trillion, followed by mining (IDR 55.9 trillion), transportation, warehousing, and telecommunications (IDR 52.6 trillion), and other services (IDR 44.3 trillion). These results show that Indonesia’s investment growth now relies on a broader range of sectors.

Domestic Investment Strengthens, Foreign Capital Remains Steady

The role of Domestic Investment (PMDN) strengthened in this period, reaching IDR 279.4 trillion or 56.9% of total investment, exceeding Foreign Investment (PMA), which amounted to IDR 212.0 trillion or 43.1%.

Despite the larger domestic portion, foreign investment continued to increase, up 4.9% from the previous quarter’s IDR 202.2 trillion.

Singapore remained the top source of foreign investment with USD 3.8 billion, followed by Hong Kong (USD 2.7 billion), China (USD 1.9 billion), Malaysia (USD 1.0 billion), and the United States (USD 0.8 billion). The basic metal industry attracted the most foreign investment with USD 3.5 billion.

Government Optimistic About 2025 Target

From January to September 2025, total investment reached IDR 1,434.3 trillion, or 75.3% of the national target of IDR 1,905.6 trillion for the year. The government remains confident that the target can be achieved by the end of 2025 through ongoing efforts to simplify regulations, speed up licensing, and strengthen national competitiveness.

“I express my appreciation and thanks to the leaders of ministries and institutions for their strong collaboration. With better cooperation and the acceleration of digital integration, such as linking spatial plans (RDTR) into the OSS system, I believe the investment climate will continue to improve,” Rosan said.

This article is a summary of two original articles. The full versions can be read at the following links:

https://www.bkpm.go.id/id/info/siaran-pers/realisasi-investasi-triwulan-iii-2025-tembus-rp491-4-triliun-hilirisasi-dan-pmdn-jadi-penggerak-utama

https://data.goodstats.id/statistic/realisasi-investasi-indonesia-capai-753-hingga-september-2025-qmBJu#google_vignette

PHOTO: FREEPIK

This article was created with AI assistance.