Indonesia FDI Posts Strongest Growth in 1-1/2 Years

Foreign direct investment (FDI) into Indonesia, excluding the financial and oil and gas sectors, surged 27.4% year-on-year to a record high of IDR 257.7 trillion (USD 14.32 billion) in Q2 2026, following an 8.5% rise in Q1 and marking the strongest growth since Q4 2024. The increase came despite persistent global economic uncertainty amid the Middle East conflict. The base metals industry attracted the largest inflows, followed by other services and the mining sector. Singapore, Hong Kong, China, Japan, and Malaysia remained the top sources of investment. For the first half of the year, FDI rose 17.3% year-on-year to IDR 432.6 trillion, with Singapore remaining the largest source of investment (USD 8.8 billion), followed by Hong Kong (USD 7.6 billion), China (USD 4.9 billion), Japan (USD 1.9 billion), and the US (USD 1.7 billion). Last year, FDI edged up 0.1% to IDR 900.9 trillion, compared with a 21.0% surge in 2024.

Foreign direct investment (FDI) into Indonesia, excluding the financial and oil and gas sectors, grew 8.5% year-on-year to IDR 250.0 trillion in Q1 2026, following a 4.3% increase in Q4 2025 and marking the second consecutive quarter of growth. The increase came despite persistent global economic uncertainty amid the Middle East conflict. The base metals industry attracted the largest share of inflows for the year, at USD 3.7 billion, followed by other services (USD 2.1 billion) and the mining sector (USD 1.1 billion). Singapore (USD 4.6 billion), Hong Kong (USD 2.7 billion), and China (USD 2.2 billion) remained the top sources of investment. Last year, FDI edged up 0.1% to IDR 900.9 trillion, compared with a 21% surge in 2024. In recent 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.

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.