Indonesia Q4 FDI Recovers, Flat in 2025

Foreign direct investment (FDI) into Indonesia, excluding the financial and oil & gas sectors, rose 4.3% yoy to a record IDR 256.3 trillion in Q4 2025, reversing an 8.9% decline in Q3 and marking the first increase in three quarters. The rebound came despite persistent global economic uncertainty and recent anti-government protests across several cities from late August to early September. For the full year, FDI edged up 0.1% to IDR 900.9 trillion, compared with a 21% surge in 2024. The base metals industry attracted the largest share of inflows for the year, with USD 14.6 billion, followed by the mining sector with USD 4.7 billion. Singapore, Hong Kong, and China remained the top sources of investment. In the past few years, FDI has strengthened, particularly in mining and metal refining, supported by Indonesia’s ban on nickel ore exports in 2020 and other mineral exports in 2023. This year, the government is banking on the sovereign wealth fund Danantara to drive new investment.

Foreign direct investment (FDI) into Indonesia—excluding investments in the financial and oil & gas sectors—fell by 8.9% yoy to IDR 212 trillion (USD 12.78 billion) in Q3 of 2025, following a 6.95% decline in Q2. This marked the second consecutive quarterly drop in FDI and the steepest fall since Q1 2020, amid US tariff policies and weakening domestic purchasing power. Some of the largest recipients of FDI in the July–September period were the base metal (USD 3.5 billion), services (USD 1.2 billion), mining (USD 1.1 billion), chemical and pharmaceutical industry (USD 1.1 billion), and transportation, warehousing, and telecommunication industries (USD 0.8 billion). Singapore (USD 3.8 billion) remained the largest source of FDI, followed by Hong Kong (USD 2.7 billion), China (USD 1.9 billion), Malaysia (USD 1 billion), and the US (USD 0.8 billion). Meanwhile, total direct investment, including domestic sources, reached IDR 491.4 trillion, up 13.9% yoy, creating more than 696,478 jobs.

Foreign direct investment (FDI) into Indonesia, excluding investments in the financial and oil & gas sectors, dropped by 6.95% year-on-year to a six-quarter low of IDR 202.2 trillion (USD 12.3 billion) in the second quarter of 2025, sharply reversing a 12.7% rise in the previous quarter. This marked the first decline in foreign direct investment since Q3 2021 and the steepest fall in five years, amid uncertainty surrounding US tariff policy and weakening domestic purchasing power. Some of the largest recipients of FDI in the April–June period were the base metal, mining, services, transportation, warehousing, and telecommunication industries. Singapore remained the largest source of FDI (USD 4.2 billion), followed by Hong Kong (USD 2.3 billion) and China (USD 1.8 billion). Meanwhile, total direct investment, including domestic sources, reached IDR 477.7 trillion, up 11.5% year-on-year, creating more than 665,764 jobs.