Minister of Investment and Downstream Industry (BKPM) Rosan Roeslani stated that realized downstream investment in the first quarter of 2025 reached IDR 136.3 trillion, marking a 79.82% increase compared to the same period in 2024, which stood at IDR 75.8 trillion. This downstream investment accounts for 29.3% of the total investment realization in Q1 2025, which amounted to IDR 465.2 trillion. 

Rosan highlighted that the portion of downstream investments in total investment realization has increased, noting that over the past three years it had remained at around 23–24%. However, in this period, downstream investment contributed 29%. He attributed this growth to an initial focus on nickel and its derivatives, and now noted the emergence of copper downstreaming as well. 

He explained that this investment came from several downstream sectors. Mineral projects dominated with IDR 97.6 trillion of the total downstream investment. Commodities processed included nickel at IDR 47.82 trillion, copper at IDR 17.7 trillion, bauxite at IDR 12.84 trillion, iron and steel at IDR 12.01 trillion, tin at IDR 1.53 trillion, and other materials such as silica sand, gold, silver, cobalt, manganese, coal, and Buton asphalt totaling IDR 5.7 trillion. 

The Ministry of Investment also recorded downstream investment in the plantation and forestry sectors reaching IDR 31.13 trillion. Forestry downstream products included palm oil at IDR 15.26 trillion, log wood at IDR 11.79 trillion, rubber at IDR 3.08 trillion, and other commodities such as nutmeg, coconut, cocoa, and biofuel totaling IDR 0.99 trillion. 

Downstreaming in the oil and gas sector also contributed IDR 6.55 trillion in investment, comprising IDR 3.13 trillion from oil and IDR 3.42 trillion from natural gas. 

Meanwhile, downstreaming in the fisheries and marine sector amounted to IDR 1.03 trillion. This included commodities such as salt, skipjack and mackerel tuna, seaweed, crab, and tilapia. 

The Ministry of Investment and Downstream Industry reported total investment realization of IDR 465.2 trillion during the January–March 2025 period. This figure marks a 15.9% increase compared to the same period last year. 

Of the total, IDR 230.4 trillion came from foreign direct investment (FDI), while IDR 234.8 trillion came from domestic investment (PMDN). 

Minister Rosan Roeslani noted that the majority of investment was located outside Java Island, with IDR 235.9 trillion realized, while Java Island accounted for IDR 229.3 trillion. 

“The Q1 investment realization represents 24.4% of the 2025 target of IDR 1,905.6 trillion,” Rosan stated during a press conference at the Merdeka Palace in Jakarta on Wednesday, April 23. 

Most of the investment entering Indonesia was concentrated in Jakarta with IDR 69.8 trillion. The next highest contributors were West Java with IDR 68.5 trillion, East Java with IDR 38 trillion, followed by Central Sulawesi with IDR 32.7 trillion, and Banten with IDR 6.7 trillion. 

Rosan, who also heads the Investment Management Agency Daya Anagata Nusantara (Danantara), added that this first-quarter investment performance was driven by five Asian countries. Singapore was the largest investor, contributing USD 4.6 billion. It was followed by Hong Kong with USD 2.22 billion, China with USD 1.8 billion, and both Malaysia and Japan with USD 1 billion each. 

“Singapore has consistently been the top investor in Indonesia for the past ten years,” Rosan noted. 

He also pointed out the sectors that attracted the most investment. The highest capital absorption came from the basic metal, metal goods, non-machinery, and equipment industries. Other significant sectors included transportation, construction, telecommunications, mining, other services, and industrial-estate and office-area development. 

“In the midst of rising geopolitical and geoeconomic tensions, thankfully we’ve still been able to meet the investment targets this quarter,” said Rosan. 

This article is published in partnership with Katadata 

Original article here