12 August 2026 (closed)
Jakarta Composite Index (6,373.85) +105.97 +1.69%
Indonesia Reaches Nearly 50% of 2026 Direct Investment Target by Mid-Year
The Ministry of Investment and Downstream Industry (also known as the Investment Coordinating Board, BKPM) released data showing that investment realization in Indonesia reached IDR 1,010.6 trillion (approx. USD $56.1 billion) in the first half of 2026, a 7.2 percent year-on-year (y/y) rise compared to the same period one year earlier (creating 1.4 million jobs for Indonesian workers).
Meanwhile, on a quarterly basis, investment realization in Q2-2026 was recorded at IDR 511.8 trillion (approx. USD $28.4 billion), an increase of 7.1 percent (y/y). Minister of Investment and Downstream Industry Rosan P. Roeslani, stated that this achievement demonstrates that investor confidence in the Indonesian economy remains maintained despite the world still facing challenges due to global economic uncertainty, geopolitical dynamics, and changes in the international trade landscape.
Table 1 - Total Investment Realization in Indonesia per Quarter (in trillion rupiah):
| Period | 2022 | 2023 | 2024 | 2025 | 2026 |
| Quarter I | 282.4 | 328.9 | 401.5 | 465.2 | 498.8 |
| Quarter II | 302.2 | 349.8 | 428.4 | 477.7 | 511.8 |
| Quarter III | 307.8 | 374.4 | 431.5 | 491.4 | |
| Quarter IV | 314.8 | 365.8 | 452.8 | 496.9 | |
| Full-Year | 1,207.2 | 1,418.9 | 1,714.2 | 1,931.2 |
Excluding investment in upstream oil & gas, financial institutions, insurance, and micro business
Source: Investment Coordinating Board (BKPM)
In Q2-2026, foreign direct investment (FDI) realization was recorded at IDR 257.7 trillion (approx. USD $14.3 billion), which is 50.4 percent of total direct investment. Meanwhile, domestic direct investment (DDI) reached IDR 254.1 trillion (approx. USD $14.1 billion), or a 49.6 percent slice of the total.
Considering the government changed its conversion rate from IDR 16,000 per US dollar in 2025 to IDR 16,500 per US dollar in 2026 to calculate FDI data, a portion of FDI expansion is driven by this updated conversion multiplier. However, it is important to note that FDI involves long-term, illiquid physical assets (such as factories and smelters). So, unlike portfolio investment in stocks and bonds, which flees the moment a currency panics, FDI is heavily driven by long-term structural factors, including political stability, ease of licensing, infrastructure availability, and proximity to raw materials.
Foreign investment realization in Q2-2026 was led by Hong Kong, Singapore, China, Japan, and Malaysia. These five countries contributed 79.6 percent of the total foreign investment entering Indonesia that quarter. Roeslani stated that for the first time over the past decade, China's investment has been more aggressive through Hong Kong, and thus the top position for FDI in Q2-2026 is held by Hong Kong with USD $5 billion. Besides Hong Kong, Chinese companies often invest in Indonesia through their Singapore-based subsidiaries.
Table 2 - Foreign Direct Investment (FDI) Realization (in trillion rupiah):
| Period | 2022 | 2023 | 2024 | 2025 | 2026 |
| Quarter I | 147.2 | 177.0 | 204.4 | 230.4 | 250.0 |
| Quarter II | 163.2 | 186.3 | 217.3 | 202.2 | 257.7 |
| Quarter III | 168.9 | 196.2 | 232.6 | 212.0 | |
| Quarter IV | 175.2 | 184.4 | 245.8 | 256.3 | |
| Full-Year | 654.4 | 744.0 | 900.2 | 900.9 |
Excluding investment in upstream oil & gas, financial institutions, insurance, and micro business
Source: Investment Coordinating Board (BKPM)
In terms of location, investment outside Java continued to dominate with a value of IDR 256.5 trillion in Q2-2026, while investment in Java reached IDR 255.3 trillion. This indicates an increasingly even distribution of investment across various regions in Indonesia. The five provinces with the largest investment realizations were Jakarta (IDR 94.9 trillion), West Java (IDR 61.3 trillion), North Maluku (IDR 40.2 trillion), East Java (IDR 40.1 trillion), and Central Sulawesi (IDR 36.6 trillion).
Based on business sectors, investment realization in the first half of 2026 was still dominated by the Base Metal, Metal Goods, Non-Machinery and Equipment Industry, followed by Other Services, Mining, Transportation, Warehousing and Telecommunications, as well as Housing, Industrial Estates and Offices.
The Investment Ministry targets total direct investment in full 2026 at IDR 2,041.3 trillion (approx. USD $116 billion). With 49.5 percent of that target having been achieved in the first half of the year, it means Indonesia remains on track to meet that target at the year-end.
Table 3 - Domestic Direct Investment (DDI) Realization (in trillion rupiah):
| Period | 2022 | 2023 | 2024 | 2025 | 2026 |
| Quarter I | 135.2 | 151.9 | 197.1 | 234.8 | 248.8 |
| Quarter II | 139.0 | 163.5 | 211.1 | 275.5 | 254.1 |
| Quarter III | 138.9 | 178.2 | 198.8 | 279.4 | |
| Quarter IV | 139.6 | 181.4 | 207.0 | 240.6 | |
| Full-Year | 552.8 | 674.9 | 814.0 | 1,030.3 |
Excluding investment in upstream oil & gas, financial institutions, insurance, and micro business
Source: Investment Coordinating Board (BKPM)
The government also continues to promote downstreaming as a core strategy for national economic transformation. In the First Semester of 2026, investment realization in the downstream sector reached IDR 300.1 trillion. Downstream investment is still dominated by mineral commodities, particularly bauxite, nickel, copper, iron & steel, and silica sand, which drive the increased added value of the national industry.
There is a change visible though in the Q2-2026 data. Usually, nickel smelting ranks as the top industry for direct investment. This time, bauxite took the top spot (for the first time) because there are several bauxite developments being carried out by both domestic and foreign investors.
Minister Roeslani emphasized that the government will continue to maintain investment momentum by simplifying business licensing, strengthening the investment ecosystem, accelerating the development of industrial and downstream estates, and improving the quality of services to investors.