Jakarta. Indonesia’s investment realization in the first quarter of 2026 is projected to reach Rp 497 trillion (around $29 billion), marking a 7% year-on-year increase, as downstream industries continue to anchor growth.

Downstream industrialization is expected to contribute Rp 150.1 trillion, accounting for 30.2% of the national investment target, underscoring its central role in the government’s industrial strategy.

Investment Minister Rosan Roeslani said performance in the early months of the year remains on track despite global economic pressures. In addition to capital inflows, the investment is estimated to generate 627,000 jobs, up 5.5% from the same period last year.

“In the first quarter, progress is in line with the targets we have set and planned,” Rosan said during a working meeting with parliament on Monday.

He stressed that Indonesia continues to stand out as an attractive investment destination, supported by its “free and active” foreign policy stance. Amid heightened geopolitical tensions—particularly in the Middle East—Indonesia is increasingly viewed by global investors as a stable alternative market.

“This situation presents opportunities. With rising tensions, especially in the Middle East, investors from those regions are engaging more intensively with us,” he said.

Investment Commitments Strengthen Outlook
Investor confidence has been further reinforced by overseas visits by Prabowo Subianto to key partner countries. From engagements in Japan and South Korea, Indonesia secured investment commitments totaling $33.8 billion, equivalent to Rp 574 trillion.

Commitments from South Korea reached $10.2 billion (Rp 173 trillion), primarily through business-to-business memorandums of understanding, while Japan accounted for a larger share at $23.6 billion (around Rp 401 trillion).

Rosan said these high-level engagements have helped reassure investors about Indonesia’s economic direction and its ability to navigate geopolitical risks.

“They give confidence that, at the highest level, the President understands both geopolitical dynamics and Indonesia’s economic landscape, as well as the steps taken to ensure investment continues to grow,” he said.

The government has reiterated its commitment to reducing uncertainty in order to sustain a conducive investment climate. Key priorities include regulatory reforms across all levels to provide greater legal certainty and stronger incentives for both foreign and domestic investors.

“What we are trying to reduce is uncertainty. We continue improving policies at every level, and this has had a positive impact on investment,” Rosan added.

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