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Investment growth slows in third quarter on weak FDI

Investment growth slowed in the third quarter as foreign direct investment (FDI) logged its steepest annual drop in five years, while domestic investors continued to sustain the gains.

Ruth Dea Juwita (The Jakarta Post)
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Fri, October 17, 2025 Published on Oct. 17, 2025 Published on 2025-10-17T16:12:19+07:00

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State asset fund Danantara CEO Rosan Roeslani addresses reporters at the State Palace complex in Jakarta on May 7, 2025. State asset fund Danantara CEO Rosan Roeslani addresses reporters at the State Palace complex in Jakarta on May 7, 2025. (BPMI Setpres/Cahyo)

I

nvestment growth eased in the third quarter as foreign direct investment (FDI) logged its steepest annual drop in five years, while domestic investors continued to sustain the gains.

Total realized investment from July through September reached Rp 491.4 trillion (US$29.6 billion), up 13.9 percent year-on-year (yoy) and helped create nearly 700,000 jobs, according to Investment and Downstream Ministry data published on Friday.

The figure extended a steady quarterly climb, rising from Rp 477.7 trillion in the second quarter and Rp 465.2 trillion in the first.

Though the value increased, investment grew at a slower pace than in the same period of last year, when it was up 15.24 percent yoy.

Read also: Domestic investors pick up slack as FDI drops in Q2

“The absolute numbers are still rising. It’s just that domestic growth is faster,” Investment and Downstream Minister Rosan Roeslani told reporters during a press briefing on Friday.

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“We can look at it two ways, domestic investment is growing strongly due to positive sentiment or foreign investment is slowing. But in nominal terms, both are increasing,” he said, referring to the increase in FDI from Rp 202 trillion in the second quarter to Rp 212 trillion in the third.

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