Indonesia Q1 FDI Grows the Least in 5 Quarters

Foreign direct investment (FDI) into Indonesia, excluding investment in the financial and oil & gas sectors, grew by 12.7% year-on-year to IDR 230.4 trillion ($13.67 billion) in the first quarter of 2025, easing sharply from a 33.3% surge in the previous three-month period.

This marked the weakest growth in foreign direct investment since Q4 of 2023, mainly supported by basic metal industries, transportation, and mining.

Indonesia has seen rising foreign investors' interests in the mining and metal smelting industries after it banned exports of nickel ore in 2020 as part of the government's effort to attract investors in the electric vehicle supply chain.

Singapore remained the biggest source of FDI ($ 4.6 billion), followed by Hong Kong ($2.2 billion) and China ($ 1.8 billion).

Meanwhile, total direct investment, including domestic sources, reached IDR 465.2 trillion, up 15.9% yoy, creating more than 594.1 thousand jobs.