- Direct investment grew by 19.5% YoY to USD 26.2 Bn, with FDI accelerating by 14.0% YoY (USD 13.6 Bn) and DDI recording double-digit growth of 29.7% YoY (IDR 197 Tn).
- Commodity-related investment continued at a fast pace, with a more broadly-based growth compared to the 2020-22 cycle which was mostly dominated by Chinese FDI into the metal sector.
- The transition to new government expedites the completion of infrastructure projects, while the policy continuity into the next administration should reduce uncertainty going forward.
- Attracting manufacturing and tech investment would be the main challenge for the next admin, as Indonesia has been falling behind its Asian peers, while manufacturing investment has mostly occurred in capital-intensive sectors, which limits job creation.
