Chinese investment in Indonesia surpasses Japan and Malaysia

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The Ministry of Investment/Investment Coordination Committee recorded that investment realization in the first half of 2025 reached 942 trillion dong, up 13.61 TP3T year-on-year, equal to 49.51 TP3T of the government's investment target of 1,905.9 trillion dong this year.Of this, FDI contributed Rp 432.6 trillion and domestic investment contributed Rp 510.3 trillion. Japan used to be one of the major and stable investors in Indonesia, but investment has been on a continuous downward trend for the last six years. in the first half of 2019, it ranked second with US$2.4 billion, and in the first half of 2025 it was only US$1.6 billion, ranking at the bottom of the list of the top five foreign investors. Chinese investment has grown significantly, ranking 12th with only US$297 million invested in 2013; rising to third in 2017; third with US$2.3 billion in the first half of 2019; and reaching US$3.6 billion in the first half of 2025. Malaysia experienced ups and downs, ranking fifth with US$1 billion in the first half of 2019, plummeting to US$5.9 billion in the first half of 2020 to rise to third, not making the top five in 2023-2024, and regaining fourth place with US$1.7 billion in the first half of 2025, sitting above Japan and demonstrating a strong interest in the Indonesian market. This statistic excludes the period of the New Crown epidemic in 2020-2022, when economic activity was low.

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