TEMPO.CO, Jakarta – Indonesia's Ministry of Investment and Downstream Industry/Investment Coordinating Board (BKPM) said global investor confidence in the country remains strong despite ongoing global economic and geopolitical uncertainties.
BKPM spokesperson Dendy Apriandi said investor confidence should not be measured solely by short-term financial market movements or market sentiment. Instead, he said, foreign direct investment (FDI) is a more reliable indicator because it reflects long-term investment decisions based on a country's economic fundamentals.
"Data shows that foreign investors remain interested in Indonesia, as reflected in the continued growth of investment realization, with FDI accounting for 50.1 percent of total investment in the first quarter of 2026. This proves that global investors' confidence in Indonesia remains strong," Dendy said in a statement on Wednesday, July 1, as quoted by Antara.
According to BKPM, FDI reached Rp250 trillion (about US$15.4 billion) in the first quarter of 2026, contributing 50.1 percent of Indonesia's total investment realization of Rp498.8 trillion.
The figure extends a steady upward trend in foreign investment over recent years, rising from Rp147.2 trillion in the first quarter of 2022 to Rp177 trillion in 2023, Rp204.4 trillion in 2024, Rp230.4 trillion in 2025, and Rp250 trillion this year.
Dendy said the sustained growth demonstrates that Indonesia remains an attractive destination for international investors. Singapore, Hong Kong, China, the United States, and Japan were the country's five largest sources of foreign investment in the first quarter of 2026.
He added that the benefits of investment extend beyond capital inflows, contributing to value-added industries, employment, and economic growth.
"Investment is not only reflected in financial markets but also flows into strategic sectors that create added value, generate jobs, and drive economic growth. These are the tangible benefits felt by the public," he said.
BKPM data shows that investment projects realized during the first quarter of 2026 created 706,569 jobs, underscoring the sector's contribution to employment and regional economic development.
Looking ahead, Dendy said the government will continue improving Indonesia's investment climate by streamlining licensing procedures, enhancing regulatory certainty, and strengthening its downstream industrialization strategy to keep the country competitive as a global investment destination.
"Today's investment determines the future of the next generation. We must continue fostering an investor-friendly business climate so investment can keep growing and support national economic development," he said.
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