Indonesia Foreign Direct Investment Growth Slows to Near Zero in 2025

Indonesia recorded 900.9 trillion rupiah in foreign direct investment for 2025 which represents a growth of only 0.1 percent compared to the previous year.

Insights:
Foreign direct investment in Indonesia IDIDgrew by a marginal 0.1 percent in 2025 to reach a total of 900.9 trillion rupiah, which is approximately $53.4 billion based on the current US Dollar / Indonesian Rupiah exchange rates. This figure marks a significant deceleration from the 21 percent growth observed in 2024 and comes as the government works to maintain economic momentum. The data released by the Indonesia Investment Ministry excludes investments made in the financial and oil and gas sectors.
The stagnation in annual growth arrives as President Prabowo Subianto prabowo subiantotargets an ambitious 8 percent economic growth rate for the nation by 2029, an increase from the current level of approximately 5 percent. While the annual figures were weak, the fourth quarter of 2025 showed a modest recovery with investment reaching 256.3 trillion rupiah, representing a 4.3 percent year-on-year increase. This follows a challenging third quarter in which foreign direct investment contracted by 8.9 percent year-on-year.
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