Foreign direct investment in Indonesia (excluding investment in banking and the oil and gas sectors) contracted 20.2 percent year-on-year to IDR 89.1 trillion (USD 6.6 billion) in the September quarter of 2018. It marked the second straight quarter drop in foreign direct investment, as investors were very cautious toward the country's financial due to a fall in currency and Indonesia recorded a trade deficit. Singapore was the biggest source of investment (USD 1.6 billion), followed by Japan (USD 1.4 billion), and China (USD 0.5 billion) Foreign Direct Investment in Indonesia averaged 74.10 IDR Trillion from 2010 until 2018, reaching an all time high of 112 IDR Trillion in the fourth quarter of 2017 and a record low of 35.40 IDR Trillion in the first quarter of 2010.
Foreign Direct Investment in Indonesia is expected to be 94.70 IDR Trillion by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Foreign Direct Investment in Indonesia to stand at 94.50 in 12 months time. In the long-term, the Indonesia Foreign Direct Investment is projected to trend around 98.80 IDR Trillion in 2020, according to our econometric models.