Indonesia continues to attract investors despite global market instability. Major countries like Singapore, Hong Kong, and China are still competing to pour billions of dollars into Indonesia’s various sectors. In fact, Singapore recorded a total investment of US$ 20.1 billion, equivalent to Rp 327.75 trillion, throughout 2024. This shows that investment opportunities in Indonesia in 2025 remain highly promising. Curious why these top investors are eyeing Indonesia and how to enter the Indonesian market? Let’s dive in!
The Ministry of Investment and Downstreaming/Indonesia Investment Coordinating Board (BKPM) reported that Singapore was Indonesia’s largest investor during the first quarter of 2025. Following Singapore, Hong Kong and China secured the second and third spots for foreign investment.
Minister of Investment and Downstreaming/Head of BKPM Rosan Perkasa Roeslani stated that Singapore’s investment in Indonesia reached US$ 4.6 billion, or around Rp 77.2 trillion (exchange rate Rp 16,800). He emphasized that Singapore has maintained this top position for the past 10 years.
“Singapore has always been number one for the past 10 to 11 years. Singapore, Hong Kong, China — we categorize them separately,” Rosan said during the press conference on the Realized Investment Performance for the First Quarter of 2025 at the Ministry of Investment office in Jakarta, Tuesday (April 29, 2025), as quoted by detikFinance.
Major Countries Continue Tapping into Investment Opportunities in Indonesia 2025
Following Singapore, Hong Kong ranked second with US$ 2.2 billion in investment. China came in third with US$ 1.8 billion, followed by Malaysia with US$ 1 billion and Japan with US$ 1 billion.
Rosan also highlighted Japan’s increasing investment activity, now ranking fifth, up from sixth in 2024, previously held by the United States.
“Japan remains highly active with ongoing investments. Recently, during their Prime Minister’s visit to Indonesia, they announced nearly US$ 900 million in investment, particularly in renewable energy,” he added.
Throughout the first quarter of 2025, the Ministry of Investment and Downstreaming/BKPM recorded total realized investments of Rp 465.2 trillion. Of this amount, foreign direct investment (FDI) accounted for Rp 230.4 trillion or 49.5%.
Here’s the list of the top 10 foreign investors in Indonesia for the first quarter of 2025:
- Singapore: US$ 4.6 billion
- Hong Kong: US$ 2.2 billion
- China: US$ 1.8 billion
- Malaysia: US$ 1 billion
- Japan: US$ 1 billion
- United States: US$ 802.16 million
- South Korea: US$ 683.29 million
- Netherlands: US$ 403.87 million
- British Virgin Islands: US$ 173.69 million
- United Kingdom: US$ 149.66 million
Investment Opportunities in Indonesia 2025: Why Do Global Investors Keep Coming?
Despite the shaky global economy, why are these economic giants still flocking to Indonesia? The answer lies in the massive market, pro-investment policies, and Indonesia’s strategic location — all of which are irresistible to investors.
With a population of 270 million, Indonesia is the largest market in ASEAN. This vast consumer base makes Indonesia a lucrative destination, especially for investors aiming to reach ASEAN customers.
Beyond market size, the Indonesian government continues to roll out the red carpet for foreign investors. Tax incentives, such as corporate income tax reductions for priority projects, are major draws. Bureaucratic reforms through the OSS RBA system have also sped up licensing processes, though they can still be a headache for new investors.
Read also: Indonesia to Showcase Infrastructure Leadership at ICI 2025 Ahead of G7 Summit in Canada
Rosan Perkasa Roeslani emphasized that national stability and regulatory certainty are two key factors that build global investor confidence in Indonesia.
“Businesses say that stability is their top priority. That’s why we must continue to perfect our investment climate,” he said.
The government, according to Rosan, is also enhancing coordination across ministries and agencies to simplify and accelerate the licensing process.
Additionally, Minister of Finance Sri Mulyani Indrawati noted that Indonesia’s economic stability is a major reason why it remains a competitive investment destination amid global uncertainty.
“Global investors are looking for safe havens. Indonesia is on their list,” Sri Mulyani said on Wednesday (April 30, 2025).
She explained that the stability of the State Budget (APBN) and low inflation are Indonesia’s key strengths. Yields on government securities (SBN) also remain well-controlled.
However, there are challenges — foreign investors must navigate complex requirements like a minimum capital of Rp 10 billion for PT PMA establishment (as per Government Regulation No. 74/2024) and a 12% VAT (according to Minister of Finance Regulation No. 131/2024), which can be overwhelming without a knowledgeable local partner.
Investment Opportunities in Indonesia 2025: Bizindo is Here to Bridge the Gap
Although Indonesia’s investment opportunities in 2025 are wide open, these opportunities come with significant challenges. Foreign investors must establish a PT PMA, handle bureaucratic processes, and manage local taxes — all of which can be daunting.
This is where Bizindo steps in as your trusted partner! We help foreign investors like you navigate the complexities of doing business in Indonesia. Here’s what Bizindo offers:
Legal Entity Set-Up:
We handle the PT PMA establishment process from the notarial deed, NIB, business permits, to the tax ID (NPWP), ensuring fast and legal processing. Whether you aim to invest in technology or energy, we tailor your PT PMA to meet specific regulations, including foreign shareholding limits (Government Regulation No. 74/2024). We also help you select locations in Special Economic Zones (SEZs) to access additional incentives (Bisnis.com, Jan 2025).
Tax Reporting: We handle accurate VAT (12%) and corporate income tax reporting via Coretax to help you avoid penalties.
Corporate Consulting: We provide smart tax strategies, such as leveraging corporate tax reductions or navigating the 0.2% Heavy Equipment Tax (PAB) when applicable (Law No. 1/2022).
Bizindo also offers payroll management, accounting, and tax services that comply with Indonesian regulations. With experience supporting various global companies, Bizindo knows how to deliver fast, legal, and low-risk solutions.
Looking for a partner to build your business in Indonesia? Bizindo is ready to assist. From legal setup, visas, taxes, to talent recruitment, we take care of it all so you can focus on growing your business while we handle the rest. Contact Bizindo now for safe and practical business solutions.
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