- Direct investment grew 12.6% YoY (USD 28.1 Bn) in Q3-24, with FDI growing 17.0% YoY (7.1% QoQ) while DDI slowing to 11.6% YoY (-5.81% QoQ).
- Hotels and restaurants sector stood out with 138.6% YoY (110.5% QoQ) growth in FDI, driven by significant investment across key tourism destinations. Investment in commodity-related sectors remains strong with a notable shift towards mining over metal processing, signalling shifting investor priorities amid changing commodity market dynamics.
- Government-driven investments in construction and infrastructure remain crucial for DDI but face uncertainty under the Prabowo administration’s new priorities. Unresolved liquidity challenges could crowd out private investment, yet targeted incentives and strong law enforcement may help attract FDI and sustain growth.
