Indonesia is experiencing a significant shift in foreign direct investment toward the manufacturing sector, with Minister of Industry Agus Gumiwang Kartasasmita highlighting that investment trends for 2026 will increasingly rely on secondary industries such as metals, chemicals, machinery, and electronics. This momentum, driven by stronger industrialization policies under President Prabowo’s administration, has attracted a growing number of global investors. Research by BRI Danareksa Sekuritas shows a sharp rise in the share of foreign investment flowing into manufacturing—from 35.3% in 2018 to 59.6% between January and September 2025—reflecting the maturation of Indonesia’s industrial ecosystem and a shift from raw material extraction to value-added processing across industrial clusters.

A notable development is the surge of manufacturing investment outside Java, where foreign direct investment of IDR 1 trillion generates an estimated IDR 1.76 trillion in Gross Fixed Capital Formation (PMTB), far exceeding the IDR 140 billion impact in Java. This trend strengthens economic growth across Sulawesi, Maluku, Kalimantan, and other regions, supporting balanced national development and deeper industrialization. The government is preparing incentives and business-friendly policies to maintain investor confidence, support industrial expansion, and reinforce Indonesia’s position as a leading manufacturing investment destination in Asia.

Source:
https://monitor.co.id/2025/11/26/investasi-manufaktur-global-terus-meningkat-di-luar-jawa/