Indonesia once again reaffirmed itself as a welcoming and promising destination for investments. The government highlighted the vast opportunities available amid shifting global economic dynamics, while also emphasizing its strong commitment to keeping the investment climate stable. This shows the government’s readiness to ensure security for global investors in Indonesia.
This statement was delivered by Deputy for State-Owned Enterprises Business Management and Development Coordination at the Coordinating Ministry for Economic Affairs, Ferry Irawan, during the Special Address Session at the 10th Belt and Road Summit in Hall 5B Main Forum, Hong Kong Convention and Exhibition Centre, Thursday (September 11, 2025).
“Indonesia remains optimistic despite facing various challenges. Global economic turbulence is influenced by external factors, but our domestic strength is solid,” Ferry said.
Ready to Welcome Global Investors in Indonesia
Household consumption has grown by around 5 percent, while investment has contributed more than 80 percent of GDP over the past two decades. Manufacturing activity has also stayed positive, reflected by the Purchasing Managers’ Index (PMI) standing at 51.5. In the first half of the year, investment reached around US$56 million (Rp924 billion) from a target of US$150 million (Rp2.48 trillion), or about 30 percent.
“These figures reflect the importance of solidarity and equal distribution of economic information,” Ferry noted.
For the 2025–2026 period, Indonesia is aiming for higher growth in industry, services, agriculture, and construction. The government is prioritizing the realization of green industry and investment acceleration. In 2026, the investment target is set at US$455.24 million (Rp7.51 trillion).
Currently, there are 428 projects and 16 national strategic programs with a total value of about Rp394 trillion. Six projects are supported by Chinese partners, worth US$14 million (Rp231 billion), covering industries such as vegetation and manufacturing.
One industrial collaboration involves four Chinese companies with a combined value of US$3.55 million (Rp58.6 billion). One of these companies has been operating since 2021 and has produced 11,696 motorcycle units as of July, with a production growth target of 10 percent over the next 20 years.
The development of the new capital city, Nusantara (IKN), is also a focus. The ADF project in Nusantara has an initial value of US$28.4 million (Rp468.6 billion) and is targeted for expansion through 2045. Meanwhile, the Jakarta-Bandung High-Speed Railway (KCJB) has seen investment of around US$7.6 billion (Rp125.4 trillion), absorbing 90 percent local labor, serving more than 11 million passengers, and expected to contribute 0.6 percent to the GDP of Jakarta and West Java.
“These strategic projects strengthen infrastructure, open jobs, boost regional growth, and enable technology transfer,” Ferry added.
He emphasized that the government continues to welcome global investors in Indonesia from various countries, including Hong Kong and China, particularly in technology and digital infrastructure. According to him, cross-country collaboration under the Belt and Road Initiative provides opportunities to strengthen relations, boost economic activity, and promote inclusive development.
Global Investors in Indonesia Still Holding Back
Investment realization in Indonesia in Q2 2025 grew more slowly than in the previous year. One reason was global geopolitical turmoil, which made foreign investors more cautious about placing their capital.
According to data from the Ministry of Investment, total investment realization in Q2 2025 reached Rp477.7 trillion, up 11.5% year-on-year (YoY). However, this growth slowed compared with Q2 2024, which recorded a 22.5% YoY increase.
Meanwhile, Foreign Direct Investment (FDI) amounted to Rp202.2 trillion, or around 42.3% of total investment. This figure actually fell 6.9% compared with the same period last year, which stood at Rp217.3 trillion.
Minister of Investment and Downstreaming/Head of BKPM Rosan Perkasa Roeslani pointed to global geopolitical tensions as the main factor slowing foreign investment flows into Indonesia.
While foreign investment declined, domestic investors showed strong performance. Domestic Direct Investment (DDI) rose significantly with a realization of Rp275.5 trillion, accounting for 57.7% of total investment in Q2.
Indonesia is offering vast opportunities amid global uncertainty. With a strong economic foundation, strategic projects worth trillions of rupiah, and the government’s commitment to accelerating investment, the country continues to position itself as a prime destination for global investors.
For investors looking to seize these opportunities, support from local partners is essential.
Bizindo is here to assist global investors in Indonesia, from company establishment, legal compliance, and work visa processing to tax and payroll solutions. With extensive experience, Bizindo ensures every investment process runs safely, efficiently, and in full compliance with regulations. Contact us today at www.bizindo.com
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