Indonesia FDI growth flat in 2025, eyes pick-up in 2026

Adds statement from investment minister in paragraph 5-7, 9 and context paragraphs

JAKARTA, Jan 15 (Reuters) - Growth of Indonesia's incoming foreign direct investment held steady in 2025, slowing down from 2024's pace, official data showed on Thursday, but the investment minister pinned hopes on sovereign wealth fund Danantara to spur fresh investment.

FDI was 900.9 trillion rupiah ($53.4 billion) in 2025, up just 0.1% from the year before and a sharp slowdown from a 21% increase in 2024, data from the investment ministry shows.

In the fourth quarter, FDI rose 4.3% from a year earlier to 256.3 trillion rupiah for the first growth in three quarters. That compared with a contraction of 8.9% in the third-quarter figures.

The data excludes investment in the financial and oil-and-gas sectors.

Investment Minister Rosan Roeslani said the turn around in the fourth quarter was worth noting given the global economy was still facing uncertainty and it followed anti-government protests in several cities in Indonesia in late August to early September.

Roeslani said Danantara will play a bigger role this year in attracting investors. He is the chief executive of the fund.

"I can assure you that this year both FDI and investment from domestic investors will increase much higher because investors could partner with Danantara, so risks are more calculated for them," he said.

President Prabowo Subianto launched Danantara in February as his main vehicle to achieve 8% economic growth by 2029, from around 5% now.

Roeslani said the fund focused last year mostly on setting up operations and hiring people. It only became operational in October.

Danantara can invest on its own, but also offers co-investment with foreign funds or companies to invest in Indonesia.

FDI has risen in the resource-rich country in the past few years, especially in the mining and metal refining sectors after banning exports of nickel ore in 2020 and other minerals in 2023, a move designed to move its industries up in the global supply chain.

Last year, the base metal sector was the biggest recipient of FDI amounting to $14.6 billion, followed by mining at $4.7 billion.

Singapore, Hong Kong and China were the biggest sources of FDI in 2025.

($1 = 16,875 rupiah)

(Reporting by Stefanno Sulaiman and Gayatri Suroyo; Editing by Jacqueline Wong, Martin Petty and Neil Fullick)

((Stefanno.Sulaiman@thomsonreuters.com;))