FX.co ★ Indonesia Q1 FDI Grows the Least in 5 Quarters

Foreign direct investment (FDI) in Indonesia, excluding the financial and oil & gas sectors, increased by 12.7% year-on-year, totaling IDR 230.4 trillion ($13.67 billion) in the first quarter of 2025. This marks a considerable slowdown from the previous quarter's substantial rise of 33.3% and is the slowest expansion since the fourth quarter of 2023. The growth has been primarily driven by the basic metal industries, transportation, and mining sectors. Notably, Indonesia has witnessed heightened interest from foreign investors in the mining and metal smelting sectors since it prohibited the export of nickel ore in 2020, aiming to attract investment in the electric vehicle supply chain. Singapore remained the largest source of FDI, contributing $4.6 billion, followed by Hong Kong with $2.2 billion and China with $1.8 billion. Overall, direct investment, including domestic contributions, rose by 15.9% year-on-year to reach IDR 465.2 trillion, generating over 594,000 jobs.