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16.01.202606:39:37UTC+00Indonesia Q4 FDI Recovers, Danantara to Support 2026 Investment

Indonesia experienced a notable increase in foreign direct investment (FDI) in the final quarter of 2025, with investments excluding the financial and oil & gas sectors reaching an unprecedented IDR 256.3 trillion, representing a 4.3% year-on-year rise. This growth marks a turnaround from the 8.9% decline observed in the third quarter and signifies the first quarterly increase after a series of contractions, despite global economic instability and recent anti-government protests that occurred in various cities from late August to early September. For 2025, overall FDI saw a marginal increase of 0.1%, totaling IDR 900.9 trillion, contrasting with the significant 21% growth recorded in 2024. The base metals industry emerged as the leading recipient of FDI for the year, securing USD 14.6 billion, followed by the mining sector, which attracted USD 4.7 billion. Singapore, Hong Kong, and China continued to be the predominant sources of investment. In recent years, FDI has been particularly robust in the mining and metal refining sectors, boosted by Indonesia's strategic bans on nickel ore exports in 2020 and on other mineral exports in 2023. In 2025, the Indonesian government is placing its bets on the Danantara sovereign wealth fund to spearhead new investment initiatives.

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