TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Domestic investors pick up slack as FDI drops in Q2

Foreign direct investment (FDI) has declined sharply, but the overall investment figure continued to rise in the second quarter (Q2) as domestic businesses picked up the slack.

Deni Ghifari (The Jakarta Post)
Premium
Jakarta
Tue, July 29, 2025 Published on Jul. 29, 2025 Published on 2025-07-29T12:17:21+07:00

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Vehicles are stuck in traffic on Nov. 13, 2024, during the evening rush hour in Jakarta. Vehicles are stuck in traffic on Nov. 13, 2024, during the evening rush hour in Jakarta. (AFP/Bay Ismoyo)

F

oreign direct investment (FDI) has declined sharply, but the overall investment figure continued to rise in the second quarter (Q2) as domestic businesses picked up the slack, which economists view as a reflection of national economic resilience.

In a Tuesday press conference in Jakarta, Investment Minister Rosan Roeslani attributed the recent drop in FDI to geopolitical and global economic developments weighing on investment appetite, noting that  "The competition to attract investment is increasing”.

He said engagement with foreign businesses was important to lure investments to Indonesia and argued that President Prabowo Subianto’s frequent foreign visits facilitated this endeavor, since the envoys normally met not just state officials but also business representatives.

Total realized investment in the second quarter amounted to Rp 477.7 trillion (US$29.1 billion), up 11 percent from the Rp 428.4 trillion logged in the corresponding quarter of the preceding year.

FDI has long accounted for around half or slightly more than half of total investment, but this year paints a different picture so far.

Prospects

Every Monday

With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape.

By registering, you agree with The Jakarta Post's

Thank You

for signing up our newsletter!

Please check your email for your newsletter subscription.

View More Newsletter

FDI dropped 6.95 percent yoy to Rp 202.2 trillion and therefore accounted for only 42.3 percent of the total investment figure in Q2, while Rp 275.5 trillion in domestic investments made up the other 57.7 percent.

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank you

Thank you for sharing your thoughts. We appreciate your feedback.

to Read Full Story

  • Unlimited access to our web and app content
  • e-Post daily digital newspaper
  • No advertisements, no interruptions
  • Privileged access to our events and programs
  • Subscription to our newsletters
or

Purchase access to this article for

We accept

TJP - Visa
TJP - Mastercard
TJP - GoPay

Redirecting you to payment page

Pay per article

Domestic investors pick up slack as FDI drops in Q2

Rp 35,000 / article

1
Create your free account
By proceeding, you consent to the revised Terms of Use, and Privacy Policy.
Already have an account?

2
  • Palmerat Barat No. 142-143
  • Central Jakarta
  • DKI Jakarta
  • Indonesia
  • 10270
  • +6283816779933
2
Total Rp 35,000

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.