Indonesiantalk.com — Under President Prabowo, Indonesia remains a prime investment destination, especially for China and Singapore
Indonesia continues to attract strong foreign investment, particularly from China and Singapore, under the leadership of President Prabowo Subianto, amid sustained policy continuity and strategic economic positioning.
This outlook was underscored at the Global Market Exploration: Focus on Indonesia forum, jointly organized by the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) and the National University of Singapore (NUS) at the Nusantara Hall of the ministry on Tuesday, Jan. 20, 2026.
The event brought together more than 40 business leaders and investors from Singapore and China to discuss Indonesia’s investment climate, policy direction and long-term economic prospects.
Speakers at the forum included Special Staff to the Minister for Institutional Relations Ricky Kusmayadi; Director of Promotion for Southeast Asia, Australia, New Zealand and the Pacific Saribua Siahaan; Director of Regional and Multilateral Cooperation Fajar Usman; NUS module faculty lead Prof. Yeo Guat Kwang; and Chairman of the China Chamber of Commerce in Indonesia for Central Java Wu Lei.
Also present were Ismeth Wibowo, commissioner of PT Sunra Asia Pacific Hi-Tech; Tomoro Coffee founder Mr. Star; senior officials from BKPM; NUS delegates; and other participants.
Ismeth said Indonesia remained a compelling destination for foreign investors, particularly from China and Singapore, citing confidence in the new administration’s economic direction.
“Under President Prabowo Subianto’s leadership, Indonesia continues to be an attractive investment destination for foreign investors, especially from China and Singapore. I am confident that strategic
investors will continue to place their capital in Indonesia,” Ismeth said.
His remarks align with recent data from Investment and Downstreaming Minister and BKPM head Rosan Roeslani, who noted that Singapore remained Indonesia’s largest source of foreign direct investment (FDI) in 2025.
“Consistently, for more than 10 years, Singapore has held the number one position. It is followed by Hong Kong and China,” Rosan said during a press conference at the BKPM office in Jakarta on Jan. 15.
According to BKPM, Singapore accounted for US$17.4 billion in investment in 2025, representing around 30.9 percent of total FDI. Hong Kong followed with US$10.6 billion, while China ranked third with US$7.5 billion.
Malaysia and Japan completed the top five, with investment values of US$4.5 billion and US$3.1 billion, respectively.
Overall investment realization last year was still dominated by domestic investment (PMDN), which contributed 53.4 percent, or Rp1,030.3 trillion, marking a year-on-year growth of 26.6 percent. Foreign investment contributed 46.6 percent, or Rp900.9 trillion, growing marginally by 0.1 percent year-on-year.
The figures suggest that while investment growth in 2025 was driven more strongly by domestic capital, foreign inflows remained substantial in absolute terms.
Looking at longer-term trends, Rosan said Chinese investment in Indonesia had expanded significantly over the past decade, despite periodic fluctuations.
From 2016 to 2018, Chinese investment hovered between US$2 billion and US$3 billion, slipping from US$2.7 billion in 2016 to US$2.1 billion in 2017 before edging up to US$2.4 billion in 2018. A sharpincrease followed in 2019, when investment jumped to US$4.7 billion and stayed elevated through 2021.
Another major leap occurred in 2022, when Chinese investment surpassed US$8.2 billion. Since then, it has remained consistently high, at around US$7 billion to US$8 billion through 2025.
“Although China is not always the largest investor, it has remained one of Indonesia’s key investment partners, especially since 2022 when investment values stabilized at a high level,” Rosan said.
Over the past four years, four economies — Singapore, Hong Kong, China and Malaysia — have almost consistently appeared among Indonesia’s top five sources of foreign investment, underscoring Indonesia’s enduring appeal within the regional and global investment landscape.
