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16.07.202606:59:16UTC+00Indonesia FDI Posts Strongest Growth in 1-1/2 Years

Foreign direct investment (FDI) into Indonesia, excluding the financial as well as the oil and gas sectors, jumped 27.4% year-on-year to IDR 257.7 trillion (USD 14.32 billion) in Q2 2026. This followed an 8.5% increase in Q1 and marked the fastest pace of growth since Q4 2024, despite ongoing global economic uncertainty linked to the conflict in the Middle East.

The base metals industry drew the largest share of inflows, followed by other services and the mining sector. Singapore, Hong Kong, China, Japan, and Malaysia remained Indonesia’s leading sources of foreign investment.

For the full year, FDI in 2025 inched up 0.1% to IDR 900.9 trillion, a sharp slowdown from the 21.0% surge recorded in 2024. Over recent years, investment has been particularly robust in mining and metal refining, underpinned by Indonesia’s 2020 ban on nickel ore exports and its 2023 ban on other mineral exports.

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