August 26, 2025 | 11:21 pm
TEMPO.CO, Jakarta - The Ministry of Investment and Downstream Industry has recorded over Rp942.9 trillion in investment realization during the first half of 2025, or 49.5 percent of the national target this year of Rp1,905.6 trillion.
Deputy of Investment Planning at the ministry, Dedi Latip, said Indonesia is seeing a 13.6 percent growth compared to the same period last year. Out of the total investment value, domestic investment contributed Rp510.3 trillion, while foreign direct investment (FDI) took up Rp432.6 trillion.
In terms of distribution, the realization of investment outside Java amounted to Rp476 trillion, or 50.5 percent, compared to Java, which reached Rp466.9 trillion, or 49.5 percent.
Dedi said, "This trend signals a shifting interest from investors to regions outside Java, especially in the mining sector." He mentioned this during the MGEI Business Forum in South Jakarta on Tuesday, August 26, 2025.
The top five provinces with the largest investments were West Java (Rp141 trillion), Jakarta (Rp140.8 trillion), East Java (Rp74.7 trillion), Central Sulawesi (Rp64.2 trillion), and Banten (Rp60.7 trillion), with recorded job creation reaching 1.25 million people.
Singapore, Hong Kong, China, Malaysia, and Japan, still dominate the investments, but he said, "future trends indicate positive developments, even though the process is not always easy."
According to Dedi, the government's focus on industry development is still directed towards four main sectors, namely minerals, oil and gas, forestry, and fisheries. From the data from the first semester, the biggest contribution came from the mineral sector, but the agricultural sector is also starting to show growth with realizations in 14 subsectors.
The government has drafted an investment roadmap up to 2040 with 28 strategic sectors. Dedi said that the potential investment value from these 28 sectors is estimated to reach US$680 billion, with opportunities for job creation for up to 3.8 million people.
To facilitate the business climate, the government also issued Government Regulation No. 28 of 2025 to refine previous regulations. This regulation strengthens the application of a positive list and a risk-based OSS system, which is expected to expedite and make the licensing process more transparent.
Although the OSS still faces technical challenges, Dedi is optimistic. He said, "With this strategy, Indonesia can be more competitive than Vietnam, the Philippines, and Thailand."
He added that several global companies, such as Apple, Microsoft, and international airlines, have started to show interest in entering Indonesia. "Investment should not only pursue figures, but be based on sustainability principles for long-term benefits to society," he said.
Editor’s Choice: Indonesia Seeing Investment Growth Outside Java Island in First Half of 2025
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