Indonesia’s 2024 investment reached US$95.2 billion, with FDI predominantly from Singapore, Hong Kong, China, Malaysia, and Japan. Opportunities include nickel, EV supply chains, healthcare, and tech investments.
Indonesia’s 2024 Investment Highlights
Indonesia ended 2024 with a robust investment realization of 1,714.2 trillion rupiah ($95.2 billion), marking a 20.8% increase year-on-year. Foreign direct investment (FDI) contributed significantly, totaling 900.2 trillion rupiah ($50 billion). In the first quarter of 2025, investments reached 465.2 trillion rupiah ($25.8 billion), with FDI comprising 230.4 trillion rupiah ($12.8 billion), primarily from Singapore, Hong Kong, China, Malaysia, and Japan.
Dominance in Refined Nickel and Industrial Infrastructure
The country now accounts for about 65% of the global refined nickel supply, with Chinese companies controlling a majority of domestic refining capacity. Key industrial zones like Morowali (IMIP) and Weda Bay (IWIP) integrate smelters, power plants, chemicals, logistics, and housing, reducing time-to-market for EV battery materials. However, these estates face increased scrutiny due to safety incidents and environmental issues.
Emerging Opportunities for Chinese Investors
Chinese firms can capitalize on Indonesia’s growth by developing AI-ready campuses, investing in edge computing, and offering integrated EPC, financing, and cloud services to lead Southeast Asia’s compute infrastructure. Additionally, with nearly the entire population covered under the BPJS health program but healthcare spending remaining at 3.7% of GDP, opportunities exist in hospital PPPs, diagnostics, and biotech collaborations within Special Economic Zones (SEZs).
| This article was first published by ASEAN Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
Read the original article : The Future of Chinese Investment in Indonesia
