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View all search resultsInvestment growth remains subdued
Since slowing down in the fourth quarter of 2025, investment has been growing at around 7 percent, a pace well below the average seen in previous years.
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Investment and Downstream Industries Minister and Danantara CEO Rosan Roeslani delivers a press statement on Dec. 17, 2025, at the State Palace complex in Central Jakarta. (Antara/Cahya Sari)
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nvestment has been growing at a lackluster pace so far in 2026 compared to what the country achieved in recent years but is still on track to reach the government’s target.
Investment and Downstream Minister Rosan Perkasa Roeslani revealed in a press conference on Thursday that realized investment in the second quarter increased 7.1 percent year-on-year (yoy).
“Amid geopolitical and geoeconomic challenges in the world, praise be to God, I can convey here that investors’ commitment to invest directly in Indonesia, or foreign direct investment [FDI], is still in line with the target set,” said Rosan.
Nominally, second-quarter investment clocked in at Rp 511.8 trillion (US$28.5 billion), or about a quarter of the full year-target set at Rp 2.04 quadrillion, while the first-half figure meets about half the 2026 target.
The pace so far this year is far below what the country achieved in the past three years. The slowdown began in the fourth quarter of last year when growth slowed to 9.7 percent yoy, followed by 7.2 percent yoy in the next.
Annual growth figures posted from the first quarter of 2023 through the third quarter of 2025 have always been in double-digit territory, even reaching beyond 20 percent at times.
FDI had long accounted for around half of the total investment, with domestic direct investment (DDI) making up the other half, except for the second and third quarters of last year, when the latter exceeded the former by about 7 percentage points.
