Investment Realization Reaches Rp1,010.6 Trillion, Absorbing Nearly 1.45 Million Workers
The Government recorded investment realization reaching Rp1,010.6 trillion in the first half of 2026, equivalent to 49.5 percent of the national investment target of Rp2,041.3 trillion. The achievement was announced by Minister of Investment and Downstream Industries/Head of the Investment Coordinating Board (BKPM) who also serves as Chief Executive Officer of Danantara Investment Management Agency, Rosan Perkasa Roeslani, after a meeting with President Prabowo Subianto at the Cabinet Meeting Room of the Presidential Palace Complex in Jakarta on Thursday (7/16).
“Despite ongoing geopolitical and global challenges, I am pleased to report that investors’ commitment to investing directly in Indonesia through foreign direct investment (FDI) remains in line with the targets set by the National Development Planning Agency (Bappenas) for 2026,” Rosan said.
Rosan further explained that the strong confidence of investors in Indonesia’s economy is reflected not only in the investment realization but also in its significant contribution to job creation. During the first half of 2026, investment realization succesfully absorbed for 1,448,862 workers, an increase of 15 percent compared to the same period last year.
He also noted that the contributions of FDI and domestic direct investment (DDI) remained relatively balanced. DDI reached Rp502.9 trillion, accounting for approximately 49.8 percent of total investment, while FDI totaled Rp507.6 trillion.
“The distribution of investment between Java [Island] and regions outside Java was also nearly balanced. Investment in Java reached Rp502.8 trillion, or 49.8 percent of the total, representing a 7.7 percent increase from the previous year. Meanwhile, investment outside Java grew by 6.7 percent year-on-year to Rp507.8 trillion,” Rosan added.
According to Rosan, Jakarta remained the province with the highest investment realization nationwide, followed by West Java, East Java, Central Sulawesi, and Banten. For foreign investment specifically, Central Sulawesi, North Maluku, and Riau Islands emerged as the leading investment destinations, primarily driven by investments in the mineral sector.
“Among all 38 provinces, we are highlighting only the top five today. In terms of total investment, combining both foreign and domestic investment, Jakarta ranked first with a 17.2 percent share, followed by West Java with Rp138.1 trillion, East Java with Rp72.7 trillion, Central Sulawesi with Rp68.7 trillion, and Banten with Rp66.3 trillion,” Rosan said.
During the occasion, Rosan also outlined the five largest investment subsectors in the first semester of 2026. The basic metals, fabricated metal products, machinery, and equipment industry ranked first, attracting Rp150.4 trillion, equivalent to 14.9 percent of total investment realization.
“The other services category, which is largely driven by data centers, accounted for around Rp114 trillion, or 11.3 percent of total investment. This was followed by mining with Rp105 trillion, transportation, warehousing, and telecommunications with approximately 10.2 percent, and housing industrial estates, and office developments, which recorded Rp85.5 trillion, or 8.5 percent,” Rosan explained.
In terms of investor origin, Singapore remained Indonesia’s largest source of investment, with total investment reaching US$8.8 billion, followed by Hong Kong with US$7.6 billion, China with US$3.9 billion, Japan with US$1.9 billion, and the United States with US$1.7 billion.
“However, there was a slight shift in the second quarter. Hong Kong became our largest investor during the second quarter, with approximately US$5 billion, followed by Singapore, China, Japan, and Malaysia. Nevertheless, on an overall basis for the first half of the year, Singapore remains Indonesia’s largest investor,” Rosan concluded. (BPMI of Presidential Secretariat) (RD/MMB)
