Jakarta. Indonesia’s strong investment growth will need to be matched by deeper technology adoption, skilled talent and stronger links to global supply chains if the country wants to sustain that momentum.

Indonesia recorded Rp1,010.6 trillion ($56.47 billion) in investment in the first half of 2026, up 7.2% from a year earlier and equivalent to 49.5% of its full-year target, according to the Investment Ministry.

The government is also attracting more capital into downstream industries, with investment in the sector reaching Rp300.1 trillion, or 29.7% of total investment, in the first half, up 6.9% year-on-year.

The figures come as Indonesia seeks to make investment a bigger driver of economic growth by combining its large domestic market and natural resources with foreign capital, technology and access to global markets.

“More importantly, this is not only the size of the market, but the economic growth that we are having,” Deputy for Investment Promotion at the Investment Ministry Nurul Ichwan said at the Investor Daily Summit 2026 in Jakarta on Thursday.

Nurul said Indonesia’s economy has maintained growth of around 5% since the COVID-19 pandemic, while its natural-resource base provides opportunities for investors. For foreign companies, however, Indonesia’s market potential is increasingly tied to whether the country can support more technology-intensive operations and connect them to wider supply chains.

Nugraheni Utami, chief country representative of the US-ASEAN Business Council, said global companies consider how their Indonesian operations fit into their businesses in other countries.

“Because the market itself is not about Indonesia, but how they can expand their operation, and also supporting Indonesia’s purpose to export the products to other countries,” Utami said.

She said Indonesia’s young, tech-savvy workforce was another important investment advantage.

“Also with the young tech savvy population, easy to adapt with the technology. I think that's one of the most important factors for investors coming to Indonesia,” Utami said.

US companies are also contributing to Indonesia’s technology capacity. Utami said USABC members had identified 90 innovations from 43 companies operating in Indonesia and trained more than 1 million people through technology capacity-building programs.

The United States was the fifth-largest source of foreign investment in Indonesia in the first half of 2026, contributing $1.7 billion.

Utami said the recently signed US-Indonesia trade agreement could further support Indonesian-based production by improving access to the US market.

“If Indonesia gets the lower tariff, it creates more investors rethinking their global investment decision to Indonesia as part of the global supply chain,” she said.

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