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View all search resultsFDI beats domestic investment with strong annual growth
In a reversal from last year’s tend, foreign direct investment (FDI) accounts for the lion’s share of realized investment in Indonesia so far this year, as domestic investors hold back.
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Light traffic is seen on the Thamrin thoroughfare in Central Jakarta on March 23 during the Eid al-Fitr holiday period. (JP/Iqro Rinaldi)
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n a reversal from last year’s tend, foreign direct investment (FDI) accounts for the lion’s share of direct investment in Indonesia so far this year as domestic investors have been holding back.
Investment and Downstream Minister Rosan Roeslani revealed in a press conference at the State Palace on Monday evening that realized direct investment in the third quarter reached Rp 528.7 trillion (US$29.4 billion), up 7.6 percent from the same period of last year.
“We will keep striving to receive quality investments that will have a positive impact on workforce employment,” Rosan said after explaining that the realized investments in the third quarter had created 745,634 jobs.
“Indeed there are investments that are capital intensive, so they did not create as many jobs as investments in the plantation industry or agriculture. However, if those investments make [Indonesia] part of global value chains or supply chains, we want them too,” he added.
FDI makes up slightly more than half of the total direct investment in the first nine months of 2026, marking a return to the old trend after foreign investment had slowed down last year while domestic investors picked up the slack.
Thanks to strong year-on-year (yoy) growth of 27 percent, FDI accounted for 51.1 percent of third-quarter investment and for 50.5 percent of total direct investment so far this year.
Foreign investors had long accounted for more than half of direct investment in the country, but 2025 bucked the trend as FDI stagnated while domestic investment grew fast to make up 53.4 percent of the total.
