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Realization of investment in Indonesia reaches Rp477.7 trillion in Q2, a positive sign

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Tempo - August 3, 2025

Anastasya Lavenia Yudi, Jakarta – The Prasasti Center for Policy Studies assesses that Indonesia's investment realization, which reached Rp477.7 trillion in the second quarter, provides a positive signal amidst global uncertainty.

The Investment Coordinating Board (BPKM) recorded a 2.7 percent increase from Rp465.2 trillion in the previous quarter. Total investment throughout the first half of this year reached Rp942.9 trillion, nearly 50 percent of the annual target of Rp1,905.6 trillion.

According to Prasasti Research Director Gundy Cahyadi, this data demonstrates the increasingly solid resilience of the national economy. "Amidst challenging global dynamics, the fact that Indonesia has been able to maintain this investment flow reflects investor confidence in the long-term prospects of our economy," he said in an official statement quoted on Saturday, August 2, 2025.

By sector, the base metals industry was the largest contributor, with investment reaching Rp67.1 trillion, or 14.1 percent of total investment. This was followed by the mining sector with Rp53.6 trillion; The transportation, warehousing, and telecommunications sector contributed Rp44.2 trillion; and the trade and repair sector Rp40 trillion. Gundy believes this trend demonstrates the ongoing transformation of the economic structure. While downstreaming remains the primary driver, new sectors, such as trade, are emerging.

Gundy also highlighted Foreign Direct Investment (PMA), which decreased by 6.9 percent compared to the same period last year. Of the investment realization in the second quarter, Rp202.2 trillion came from foreign investors. Meanwhile, domestic investment (PMDN) contributed Rp275.5 trillion. "Investors are being more cautious in the short term, but they still view Indonesia as a strategic destination," he said.

Minister of Investment and Downstreaming/Head of the Financial and Development Supervisory Agency (BPKM), Rosan Roeslani, stated that the employment generated from investment in the second quarter of this year reached 665,764 people. "So, this represents the employment created from investment in the second quarter alone," he said on Tuesday, July 29, 2025, as quoted by Antara.

The top five countries realizing foreign investment in the second quarter of 2025 were Singapore (US$4.2 billion), Hong Kong (US$2.3 billion), China (US$1.8 billion), the United States (US$0.8 billion), and Malaysia (US$0.7 billion).

Source: https://en.tempo.co/read/2035449/realization-of-investment-in-indonesia-reaches-rp477-7-trillion-in-q2-a-positive-sig

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