Indonesia Investments Reaches Rp511.8 Trillion in Q2
Indonesia’s Minister of Investment and Downstream/ Head of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani, announced that investment realization in the second quarter of 2026 reached Rp511.8 trillion. The figure represents a 7.1 percent increase compared with the same period last year and equals to 25.1 percent of the Government national investment target for 2026.
In a press statement after meeting with President Prabowo Subianto at the Presidential Palace, Jakarta, on Thursday (07/16), Rosan said that long-term investors’ confidence in Indonesia remains strong, particularly among key partner countries including China, Japan, and South Korea.
According to him, investors still view Indonesia as an attractive investment destination with favorable long-term returns. He added that the Government has maintained efforts to improve investment climate through policies that provide greater business certainty.
“We also continue to maintain and improve the investment climate, particularly through increasingly favorable policies which has been met with a positive response from investors, especially with the introduction of government regulations that provide greater certainty, particularly in terms of licensing and permit,” he added.
In the second quarter of 2026, investment has been able to absorb 742,293 manpower, an increase of 5.1 percent from the previous year. Domestic investment accounted for 49.6 percent of total realized investment, while foreign direct investment contributed 50.4 percent, reflecting a relatively balanced composition.
Regionally, investment was also nearly evenly distributed between Java and regions outside the island. The Government expected to further promote equitable distribution of investment across the country to unlock the economic potential of more regions.
The Minister went on to say that North Maluku recorded the highest foreign direct investment realization of Rp39. 5 trillion among foreign investment destinations in the second quarter followed by Jakarta, West Java province, Central Sulawesi province, and East Java province.
For domestic investment, Jakarta remained the largest recipient with Rp58.6 trillion, followed by West Java province with Rp26.9 trillion and East Java province with Rp26.8 trillion.
The manufacturing of basic metals, fabricated metal products, machinery, and equipment remained the largest investment subsector, attracting Rp81 trillion, or 15.8 percent of total investment. Other major sectors included transportation, warehousing, and telecommunications with Rp57.3 trillion; mining with Rp53.1 trillion; other services with a 9.7 percent share; and wholesale and retail trade, including repair services, with Rp40.8 trillion.
Rosan also highlighted a shift in the origin of foreign investment during the second quarter. For the first time in a decade, Hong Kong became Indonesia’s largest source of foreign investment, reflecting what increasingly aggressive Chinese investment routed through Hong Kong.
According to BKPM data, Hong Kong invested US$5 billion during the quarter, followed by Singapore with US$4.2 billion, China with US$1.7 billion, Japan with US$900 million, and Malaysia with US$700 million.
The latest investment figures underscore Indonesia’s continued position as one of the region’s leading investment destinations. The Government expects ongoing regulatory reforms, greater legal certainty, and a more balanced regional distribution of investment to strengthen economic growth and support job creation. (BPMI of Presidential Secretariat) (RAS/LW)
