Jakarta: Malaysia emerged as the fifth-largest source of foreign investment in Indonesia during the second quarter (2Q) of 2026, contributing a significant US$700 million. This was part of Indonesia's total realised investment amounting to Rp511.8 trillion for the quarter.
According to BERNAMA News Agency, Investment and Downstreaming Minister Rosan Roeslani revealed that Hong Kong led as the largest contributor to foreign investment in Indonesia for 2Q, with investments totaling US$5.5 billion. Singapore followed with US$4.2 billion, China provided US$1.7 billion, and Japan contributed US$900 million. Minister Roeslani explained that the investment figures reflect the jurisdictions through which the funds entered Indonesia and not necessarily the countries of origin of the investing companies.
Roeslani further stated that investment realisation in 2Q experienced a 7.1 percent increase year-on-year, amounting to Rp511.8 trillion and leading to the creation of 742,223 jobs, marking a 5.1 percent increase compared to the same period last year. For the first half (H1) of 2026, total investment reached Rp1,010.6 trillion, a 7.2 percent rise year-on-year, hitting 49.5 percent of the annual target. This investment surge generated employment for 1,448,862 individuals, a 15 percent increase from the previous year.
Rosan highlighted that Singapore maintained its position as the largest foreign investor in Indonesia for H1 2026, with investments totaling US$8.8 billion. It was followed by Hong Kong at US$7.8 billion, China at US$3.9 billion, Japan at US$1.9 billion, and the United States at US$1.7 billion. He emphasized the government's commitment to improving the investment climate through regulatory reforms, citing the introduction of Government Regulation No 28 last October, which enhanced certainty in the licensing process and was positively received by investors.
Investment in downstream industries for 2Q reached Rp152.7 trillion, representing 29.8 percent of total realised investment, a 5.7 percent year-on-year increase. Rosan noted that bauxite surpassed nickel as the leading commodity for downstream investment during this period, fueled by new projects from both domestic and foreign investors. The Indonesian government plans to expand downstream development beyond minerals to include palm oil, rubber, timber, silica sand, and other commodities outlined in the country's downstream blueprint.