Job Creation Increases by 8.5% with 594,104 Workers Absorbed
Amid global economic uncertainties, Indonesia has once again recorded positive investment growth. Investment realization throughout the first quarter of 2025 reached IDR465.2 trillion, up 2.7% compared to Q4 2024 and significantly increased by 15.9% compared to the same period last year. This achievement has fulfilled 24.4% of the 2025 investment realization target of IDR1,905.6 trillion.
This investment performance has also had a positive impact on job creation, with direct labor absorption reaching 594,104 people, an 8.5% increase compared to Q1 2024. This was announced by the Minister of Investment and Downstream Industries/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani during the Q1 2025 Investment Realization Press Conference on Tuesday (29/04).
National Economic Resilience Amid Global Dynamics
According to Rosan, this achievement reflects national economic resilience and the implementation of government strategies in maintaining investment attractiveness and climate amid global dynamics.
"If we look at the trend, it's very good, because in 2025, the investment increase compared to 2024 is 15.9%, which is quite high. We see this from the incoming appetite and ongoing investment realization, and God willing, we can achieve that figure," said Rosan.
Rosan added that global trade tensions, such as the increase in US import tariffs, have not directly impacted investment flows to Indonesia. Investment realization figures reflect capital expenditure for physical projects such as factory construction, infrastructure, and production facilities involving long-term business calculations and risks.
"This achievement is a very good and positive indicator amid increasing geopolitical and geoeconomic tensions. Alhamdulillah, we see investment interest, both from domestic and foreign sources, continuing to increase in Indonesia," explained Rosan.
Manufacturing Industry Sector Dominates Investment Realization
The manufacturing industry sector dominates investment realization by business sector, with a value of IDR67.3 trillion, followed by:
- Transportation and telecommunications (IDR66.5 trillion)
- Mining (IDR48.6 trillion)
More Balanced Investment Distribution
The investment distribution between Java and outside Java has also become more balanced:
- Outside Java: IDR235.9 trillion (50.7% of total investment)
- Java: IDR229.3 trillion (49.3% of total investment)
Investment growth outside Java of 17.4% emphasizes the direction of national development equity. Central Sulawesi Province has become one of the growth engines outside Java with a realization of IDR32.7 trillion, placing it in the national top five alongside DKI Jakarta (IDR69.8 trillion) and West Java (IDR68.5 trillion).
Balanced Growth in Foreign and Domestic Investment
Amid external pressures, Foreign Direct Investment (FDI) continues to contribute significantly with IDR230.4 trillion, or 49.5% of total investment realization. Meanwhile, Domestic Direct Investment (DDI) amounts to IDR234.8 trillion or 50.5%.
The five sectors contributing the largest FDI figures are:
- Basic metal industries, metal goods, non-machinery and other equipment (US$3.6 billion)
- Mining (US$1.2 billion)
- Transportation, warehousing, and telecommunications (US$1.1 billion)
- Other services (US$1.1 billion)
- Chemical and pharmaceutical industries (US$0.9 billion)
Singapore remains the largest source of investment (US$4.6 billion), followed by Hong Kong, China, Malaysia, and Japan.
Downstream Program Drives Investment
The natural resource downstream program continues to be a main pillar in driving investment. In Q1 2025, investment realization in the downstream sector reached IDR136.3 trillion or 29.3% of total national investment.
The largest contributions came from:
- Mineral sector (IDR97.60 trillion)
- Plantation and forestry sector (IDR31.12 trillion)
- Oil and gas (IDR6.55 trillion)
- Fisheries and marine (IDR1.03 trillion)
5.3% Economic Growth Target
Entering 2025, the government is targeting investment realization of IDR1,905.6 trillion, up 11.14% from last year's achievement of IDR1,714.2 trillion, to support the national economic growth target of 5.3%.
"With a strong foundation and ongoing structural reforms, Indonesia is optimistic about maintaining investment growth momentum while strengthening the national economic foundation amid global challenges," concluded Rosan.