Minister of Investment and Downstreaming Rosan Roeslani announced that Indonesia's investment realization during the first half of 2026 reached IDR 1,010.6 trillion, equivalent to 49.5% of this year's investment target of IDR 2,041.3 trillion. The figure grew by 7.2% compared to the same period last year and generated employment for 1,448,862 workers.

Rosan explained that the investment consisted of Foreign Direct Investment (FDI) amounting to IDR 507.6 trillion, representing 50.2% of the total realized investment, while Domestic Direct Investment (DDI) reached IDR 502.9 trillion.

"Despite the ongoing geopolitical and geoeconomic challenges around the world, we are grateful that investors' commitment to direct investment in Indonesia remains in line with the targets that have been set," Rosan said during a press conference at Merdeka Palace in Jakarta on Thursday, 16 July.

In terms of regional distribution, investment outside Java reached IDR 507.8 trillion, slightly surpassing investment on Java, which totaled IDR 502.8 trillion. Jakarta recorded the highest combined FDI and DDI realization during the January–June period, amounting to IDR 173.6 trillion, or 17.2% of total national investment. It was followed by West Java with IDR 138.1 trillion, East Java with IDR 72.7 trillion, Central Sulawesi with IDR 68.7 trillion, and Banten with IDR 66.3 trillion.

Rosan added that the basic metals, fabricated metal products (excluding machinery and equipment) industry contributed the largest share of investment, totaling IDR 150.4 trillion, or 14.9% of total investment.

The sector was followed by other services with IDR 114 trillion, mining with IDR 105 trillion, transportation, warehousing and telecommunications with IDR 102.7 trillion, and housing, industrial estates, and office buildings with IDR 85.8 trillion.

Furthermore, Rosan stated that Singapore remained the largest source of foreign investment, contributing USD 8.8 billion. It was followed by Hong Kong with USD 7.6 billion, China with USD 3.9 billion, Japan with USD 1.9 billion, and the United States with USD 1.7 billion. These five countries accounted for 77.8% of total foreign investment inflows into Indonesia.

The Head of the Daya Anagata Nusantara Investment Management Agency (Danantara) added that investment in downstream industries during the first half of 2026 reached IDR 300.1 trillion, equivalent to 29.7% of total national investment. He noted that the figure increased by 6.9% year-on-year.

Most downstream investment originated from FDI, which amounted to IDR 212.8 trillion, while DDI contributed IDR 87.3 trillion. Central Sulawesi and North Maluku were the two main destinations for downstream investment, receiving IDR 56.1 trillion and IDR 53.9 trillion, respectively.

"Investment in downstream industries is currently still dominated by the mineral sector," Rosan said.

This article is published in partnership with Katadata 

Original article here