Indonesia Records USD USD 86.5 Billion in Investments as of September

Indonesia has amassed IDR 1,434.3 trillion in investments from domestic and foreign sources as of September, the government announced on Friday, with Singapore maintaining its position as the largest foreign investor. 

The latest announcement showed that Indonesia had achieved 75.3% of its full-year investment target. Southeast Asia’s largest economy aims to record approximately IDR 1,905.6 trillion in investments throughout 2025, which will mark President Prabowo Subianto’s first year in office. 

“We do admit that tensions were on the rise at the start of the year, but things have calmed down. … This has given a positive atmosphere,” Investment Minister Rosan Roeslani told reporters in Jakarta, referring to the U.S. tariff war and the Hamas-Israel ceasefire. 

Investment figures for January–September 2025 showed a 13.7% year-on-year (yoy) increase. The funds invested in the country have generated jobs for around 1.9 million people. 

Domestic investors remained the largest contributors, accounting for about IDR 789.7 trillion or 55.1% of total investments during the same nine-month period. Rosan revealed that mining company AMMAN’s smelter project in West Nusa Tenggara also contributed to the investment realization. 

Indonesia recorded almost USD 8.9 billion in foreign direct investment (FDI) inflows. The top five FDI sources remained unchanged from the first half of the year. Singapore remained the biggest source, with investments reaching USD 12.6 billion between January and September, followed by Hong Kong (USD 7.3 billion), China (USD 5.4 billion), Malaysia (USD 2.7 billion), and Japan (USD 2.3 billion). 

The latest statistics are a positive sign for Indonesia, which aims to achieve more balanced economic growth across its regions. Approximately IDR 741.8 trillion was allocated to regions outside Java, accounting for 51.7% of total investments. Businesses invested IDR 692.5 trillion in Java, the country’s most populous island, as of the end of September. 

“Looking at the current trend and inflows, we are confident that we can reach the full-year target of IDR 1,905.6 trillion, if God is willing,” Rosan said. 

USD 1 = IDR 16500 

Source: Jakarta Globe 

Indonesia Expects More Capital Inflows, Firmer Rupiah as Q4 Growth Picks Up 

Indonesia’s Finance Minister Purbaya Yudhi Sadewa said on Tuesday that the rupiah is expected to strengthen in the fourth quarter, with capital inflows projected to rise as foreign investors gain confidence in the country’s accelerating economic growth. 

Purbaya, who replaced former finance minister Sri Mulyani Indrawati last month amid widespread protests over inequality and unemployment in Southeast Asia’s largest economy, said growth could reach 5.67% year-on-year (yoy) in the fourth quarter, up from 5.12% in the second quarter. 

That figure is higher than the 5.5% outlook he provided last week. “I’m sure later in the fourth quarter, once they know the economy is heading in the direction of improvement, foreign capital will return and the rupiah will tend to be stronger than now,” Purbaya told a press conference. 

The government is preparing an additional stimulus package, which will be introduced on top of a nearly USD 1 billion economic stimulus unveiled in September. That earlier package included food assistance programs and temporary construction work. 

The rupiah closed slightly lower on Tuesday at IDR 16,570 per U.S. dollar. It has been among the worst-performing emerging Asian currencies this year, weakening by about 3% amid investor concerns over central bank independence and fiscal discipline following Sri Mulyani’s departure. 

Purbaya reported that the government ran a budget deficit of IDR 371.5 trillion (approximately USD 22.42 billion), equivalent to 1.56% of GDP, between January and September. This was larger than the 1.1% of GDP recorded during the same period in 2024. The full-year deficit outlook for 2025 remains unchanged at 2.78% of GDP. 

To help finance the deficit, Indonesia will soon launch its first sale of dim sum bonds — bonds denominated in Chinese yuan issued outside mainland China — a finance ministry official said. 

Government revenues in the first nine months of 2025 fell 7.2% from a year earlier to IDR 1,863.3 trillion, while total expenditure reached IDR 2,234.8 trillion, about 0.8% lower than the same period in 2024. 

Source: Reuters 
 

 
Govt to Mandate Radiation Survey Reports for Industrial Estates 

The Industry Ministry is drafting a new regulation that will require all industrial estates and factories across Indonesia to regularly report radiation survey results. The move follows the discovery of the radioactive isotope Cesium-137 (Cs-137) in the Cikande industrial area in Banten. 

Industry Minister Agus Gumiwang Kartasasmita announced the upcoming regulation on Tuesday during the Investor Daily Roundtable event in Jakarta. He explained that the government would mandate the use of radiation portal monitoring (RPM) systems designed to detect radioactive materials. 

“We will prepare a regulation requiring industrial estates and factories in Indonesia to report the results of RPM surveys. The technology and equipment are already available,” Agus said on Tuesday, as reported by Kumparan. 

The government plans to implement a collaborative model to reduce the financial burden on companies. Instead of requiring every business to purchase costly RPM equipment, industries will be allowed to partner with certified third-party surveyors. 

Agus said the approach would simplify compliance while maintaining operational feasibility. The cornerstone of the new policy will be mandatory, periodic submission of survey data to the Industry Ministry. This centralized reporting system aims to create a comprehensive national database on radiological safety. 

Agus emphasized that the regulation’s primary goal is to protect public health and consumer safety. “At the Industry Ministry, we will definitely prioritize safety and public health, so buyers and consumers can truly be assured of their safety when purchasing products. That’s non-negotiable: consumer safety,” he said, as quoted by Kumparan. 

The minister expressed confidence that the new policy would be enacted quickly. “That’s easy. We will inform you when the Industry Ministry regulation and its harmonization will be finalized,” he said, signaling that the bureaucratic process would be fast-tracked following the Cikande incident. 

Authorities have also expanded their investigation after the U.S. Food and Drug Administration (FDA) detected Cs-137 contamination in spices exported from Indonesia. A government spokesperson said traces of radioactivity were recently found at a clove farm in Sumatra. The discovery follows the FDA’s detection of Cs-137 in a sample of clove from PT Natural Java Spice during screening, after similar contamination was found in August in a sample of frozen shrimp from Indonesia. 

Inspection teams have since been deployed to processing facilities and farms on Java and Sumatra, task force spokesperson Bara Hasibuan said on Tuesday, as reported by AFP. 

Authorities previously found traces of Cs-137 in at least 22 facilities within the Cikande industrial estate, about 60 kilometers west of Jakarta. In response, the government has tightened restrictions in the area and begun vehicle inspections for potential contamination. 

Additionally, the government has suspended imports of scrap iron and steel, which are believed to be the source of contamination. The suspension will remain in place until a radioactive monitoring system is “fully strengthened,” Environment Minister Hanif Faisol Nurofiq said in a statement posted on Instagram. 

Source: The Jakarta Post