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View all search resultsInvestment growth cools as global turmoil hurts investor appetite
Foreign direct investment (FDI) reached Rp 250 trillion in Q1 2026, rising 8.5 percent year-on-year, although it slightly declined compared with Rp 256 trillion in the previous quarter.
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High-rise buildings are seen on March 14, 2021, in the Sudirman Central Business District in South Jakarta. (AFP/Adek Berry)
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nvestment growth eased in the first quarter, extending a slowing trend seen over the past year as foreign inflows softened while domestic investors held up sustaining overall growth.
Experts said foreign direct investment (FDI) was entering a phase of moderation, driven by heightened caution amid global volatility rather than a weakening appetite for investing in the country.
Total realized investment from January through March reached Rp 498.8 trillion (US$28.9 billion), up 7.2 percent year-on-year (yoy) and creating more than 700,000 jobs, according to Investment and Downstream Ministry data published on Thursday.
The figure was only slightly higher than the previous quarter’s Rp 496.9 trillion, marking a second consecutive quarter of single-digit growth.
Though the value continued to rise in absolute terms, growth slowed from 15.9 percent yoy recorded in the first quarter of 2025.
Southeast Asia’s largest economy aims to attract more than Rp 2 quadrillion in investment in 2026, up from Rp 1.93 quadrillion realized in last year, with investment expected contributing 30 percent of the country’s gross domestic product (GDP).
“Investment typically contributes around 28-29 percent of GDP, but it would rise further. Our benchmark is not only the size of investment, but also job creation,” Investment Minister Rosan Roeslani told a press conference in Jakarta on Thursday.
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