Indonesia FDI Drops the Most in Over 5 Years

Foreign direct investment (FDI) into Indonesia—excluding investments in the financial and oil & gas sectors—fell by 8.9% yoy to IDR 212 trillion (USD 12.78 billion) in Q3 of 2025, following a 6.95% decline in Q2. This marked the second consecutive quarterly drop in FDI and the steepest fall since Q1 2020, amid US tariff policies and weakening domestic purchasing power. Some of the largest recipients of FDI in the July–September period were the base metal (USD 3.5 billion), services (USD 1.2 billion), mining (USD 1.1 billion), chemical and pharmaceutical industry (USD 1.1 billion), and transportation, warehousing, and telecommunication industries (USD 0.8 billion). Singapore (USD 3.8 billion) remained the largest source of FDI, followed by Hong Kong (USD 2.7 billion), China (USD 1.9 billion), Malaysia (USD 1 billion), and the US (USD 0.8 billion). Meanwhile, total direct investment, including domestic sources, reached IDR 491.4 trillion, up 13.9% yoy, creating more than 696,478 jobs.