Investment realization in the second quarter of 2025 reached IDR 477 trillion, marking an 11% increase compared to the same period last year, according to data released by the Ministry of Investment and Downstream Industry. The basic metal industry, including metal products excluding machinery and equipment, recorded the highest investment of IDR 67 trillion. 

Minister of Investment and Downstream Industry, Rosan Roeslani, stated that the increase was largely driven by domestic investment, which accounted for 57.7% or IDR 275.5 trillion. Meanwhile, 50.3% of the new investments, or IDR 240.2 trillion, were located outside the island of Java. 

“This is what’s most important — investments in the second quarter alone were able to absorb 665,764 workers,” Rosan said during a press conference in Jakarta on Tuesday, July 29. 

Among the sectors receiving the largest share of investment were the basic metal and metal goods industry (excluding machinery and equipment) at IDR 67.1 trillion or 14.1%, followed by the mining sector with IDR 53.6 trillion (11.2%), other services with IDR 44.8 trillion (9.4%), the transportation, warehousing, and telecommunications sector with IDR 44.2 trillion (9.3%), and the trade and repair sector at IDR 40 trillion (8.4%). 

First Half 2025 Investments 

Total investment realization in the first half of 2025 reached IDR 942.9 trillion, an increase of 13.6% year-on-year. The second-quarter investment performance significantly contributed to this figure, with IDR 477.7 trillion recorded — an 11% rise from Q2 2024. 

Minister Roeslani noted that total investment in the first semester succeeded in absorbing 1.25 million workers nationwide. However, the figure remains below 50% of the full-year investment target set by President Prabowo Subianto, which stands at IDR 1,905.6 trillion — a 15.49% increase over the previous administration’s target of IDR 1,650 trillion. 

Domestic investment remained dominant, contributing 54.1% or IDR 510.3 trillion of the total. Geographically, investment outside Java reached IDR 476 trillion. Despite this, four of the five provinces with the highest investment values from January to June 2025 were located on Java Island — West Java at IDR 141 trillion, Jakarta at IDR 140.8 trillion, East Java at IDR 74.7 trillion, and Banten at IDR 60.7 trillion. 

Central Sulawesi emerged as the leading province outside Java, recording investment of IDR 64.2 trillion in the first half of the year. The province also ranked second in terms of foreign investment, attracting up to USD 3.7 billion. 

The government reported that 45.4% of investment between January and June was channeled into the services sector. Three industrial sectors exceeded IDR 100 trillion in capital inflows during this period: the basic metal industry and related sectors with IDR 134.4 trillion, transportation, warehousing, and telecommunications with IDR 110.7 trillion, and mining with IDR 102.2 trillion. 

Foreign investment flowed heavily into the basic metal and related sectors, amounting to USD 7.3 billion or nearly IDR 120 trillion. On the domestic front, investment was highest in the transportation, warehousing, and telecommunications sector, totaling IDR 83.6 trillion. 

Singapore remained the top source of foreign investment, contributing USD 8.8 billion in the first half of 2025. Hong Kong followed with USD 4.6 billion, trailed by China at USD 3.6 billion. Malaysia was the only ASEAN country in the top five, recording USD 1.7 billion in investments, followed closely by Japan at USD 1.6 billion. 

This article is published in partnership with Katadata 

Original article here