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17.10.202502:31:10UTC+00Indonesia FDI Drops the Most in Over 5 Years

In the third quarter of 2025, foreign direct investment (FDI) in Indonesia, excluding the financial and oil & gas sectors, experienced a significant decline of 8.9% year-on-year, amounting to IDR 212 trillion (approximately USD 12.78 billion). This downturn followed a similar trend in the second quarter, where FDI had also decreased by 6.95%. The consistent quarterly decline is the most substantial since the first quarter of 2020, attributed primarily to U.S. tariff policies and a decrease in domestic purchasing power.

During the July to September period, the sectors receiving the most substantial FDI included base metals (USD 3.5 billion), services (USD 1.2 billion), mining (USD 1.1 billion), the chemical and pharmaceutical industry (USD 1.1 billion), and transportation, warehousing, and telecommunications (USD 0.8 billion).

Singapore emerged as the top investor, contributing USD 3.8 billion, followed by Hong Kong with USD 2.7 billion, China at USD 1.9 billion, Malaysia with USD 1 billion, and the United States at USD 0.8 billion. In total, including domestic investments, the direct investment reached IDR 491.4 trillion, marking a 13.9% increase year-on-year and resulting in the creation of over 696,478 jobs.

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