Foreign direct investment (FDI) into Indonesia - statistics & facts
As Southeast Asia’s largest economy, Indonesia has become an attractive market for foreign direct investments (FDI). The country has seen a consistent upward trend of FDI in recent years, with net inflows reaching over 21.6 billion U.S. dollars in 2023. Its strategic geographical location, abundant natural resources, growing middle class, and substantial labor force have made Indonesia a promising destination, especially for investors seeking growth in emerging markets. Furthermore, the significance of greenfield investments, which accounted for a notable share of the total FDI inflows, shows investor confidence in Indonesia’s potential for long-term growth.
Manufacturing, transportation and storage, as well as mining—some of the largest contributors to Indonesia’s economy—stood out as sectors receiving the most investment. In 2023, base metal manufacturing secured nearly 12 billion U.S. dollars in investments, making it the largest industry for FDI in Indonesia. Transportation, storage, and telecommunications followed with around 5.6 billion U.S. dollars, reflecting the growing infrastructure across the country. The chemicals and pharmaceuticals manufacturing industry ranked third, closely followed by mining, which remains a vital sector due to Indonesia’s rich mineral resources.
Leading investors and key industries
Singapore topped the list of Indonesia’s major FDI contributors, with around 15 billion U.S. dollars of realized investments in 2023. Other major investors included China, Hong Kong, and Japan, highlighting the ties and Indonesia’s strategic role within the Asia-Pacific region.Manufacturing, transportation and storage, as well as mining—some of the largest contributors to Indonesia’s economy—stood out as sectors receiving the most investment. In 2023, base metal manufacturing secured nearly 12 billion U.S. dollars in investments, making it the largest industry for FDI in Indonesia. Transportation, storage, and telecommunications followed with around 5.6 billion U.S. dollars, reflecting the growing infrastructure across the country. The chemicals and pharmaceuticals manufacturing industry ranked third, closely followed by mining, which remains a vital sector due to Indonesia’s rich mineral resources.
