Even as global tensions rise, Indonesia continues to shine as a top destination for foreign investment. In the second quarter of 2025, foreign direct investment (FDI) flowing into the country reached Rp202.2 trillion, reaffirming investor confidence in Southeast Asia’s largest economy. Among the countries fueling this momentum, Singapore stood out as the biggest contributor.
According to data from the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM), Indonesia recorded total investment realization of Rp477.7 trillion during Q2 2025. This marks an 11.5% increase compared to the same period last year.
Of the total, foreign investment made up 42.3% or Rp202.2 trillion, while domestic investment reached Rp275.5 trillion, contributing 57.7%.
“The difference between domestic and foreign investment hasn’t been too wide, but domestic growth has been quite strong. Alhamdulillah, we’re seeing greater contribution from within the country,” said Minister of Investment and Head of BKPM Rosan P. Roeslani during a press conference on Tuesday, July 29, 2025.
Singapore’s FDI during this quarter was valued at US$4.2 billion, making up 33.3% of the total foreign investment. It was followed by Hong Kong with US$2.3 billion or 18.6%.
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“Singapore has consistently held the top spot in foreign direct investment for more than 10 years,” Rosan noted.
China came in third with US$1.8 billion, or 14.4%, followed by the United States with US$800 million and Malaysia with US$700 million during the second quarter of this year.
In terms of regional distribution, investments outside Java outpaced those on the island. Investment outside Java accounted for Rp240.2 trillion or 50.3%, while Java itself saw Rp237.5 trillion or 49.7%.
“In the past, investment was heavily concentrated in Java. Now, it’s spreading more evenly across regions, which supports new economic growth and job creation,” Rosan added during the same press event.
These figures of foreign investment in Indonesia reflect not only the nation’s resilience in the face of global economic shifts, but also its growing appeal to both foreign and local investors seeking stable, long-term opportunities.
