- Direct investment grew 9.7% YoY (USD 28.8 Bn) in Q1-25, slowing from 22.3% YoY in Q4, largely driven by weaker FDI growth (5.6% YoY), while DDI growth (in IDR terms) accelerated to 19.1% YoY.
- A significant portion of DDI came from the tertiary sector, particularly transportation and storage (around USD 3 Bn), likely supported by digitalization and rising e-commerce demand.
- Both FDI and DDI in commodity-related sectors (especially metal processing) remained resilient, despite long-term downside risks.
- DDI in manufacturing declined sharply, particularly in wood (-76.7% YoY), paper (-43.1% YoY), and food & beverages (-25.4% YoY). In contrast, FDI in manufacturing continued to rise, especially in the leather goods and footwear industry (189.8% YoY).
- Uncertainty around US tariff policy may dampen investment momentum until there is greater clarity on the Trump administration’s long-term trade strategy.
