Top Foreign Investors in Indonesia (by Country and Continent)

Indonesia has long been a magnet for foreign direct investment (FDI), thanks to its abundant natural resources, strategic location, and large consumer market.

In 2023, the country saw a significant surge in FDI, as reported by the Ministry of Investment/BKPM (Badan Koordinasi Penanaman Modal), with foreign investments playing a crucial role in driving the nation’s economic growth.

Also read: Major Industries in Indonesia (Based on Contribution to GDP)

Key Foreign Investors by Country

According to the latest data from BKPM, the top five countries contributing the most to Indonesia’s FDI in 2023 were Singapore, China, Hong Kong, Japan, and Malaysia. Below is a breakdown of their contributions:

1. Singapore

Singapore was the largest foreign investor in Indonesia, with a total investment of US$15.4 billion.

This is consistent with Singapore’s long-standing position as a leading source of investment in Indonesia, often attributed to the strong economic ties between the two nations and Singapore’s role as a regional financial hub.

2. China

China followed as the second-largest investor, with investments amounting to US$7.4 billion.

China’s investment focus has been on infrastructure and manufacturing, aligning with Indonesia’s industrial growth strategies and China’s Belt and Road Initiative (BRI).

3. Hong Kong

Hong Kong contributed US$6.5 billion in foreign direct investment, making it the third-largest investor.

Hong Kong’s investments have primarily targeted sectors like real estate, financial services, and telecommunications, leveraging its robust financial systems and international business connections.

4. Japan

Japan, a long-term economic partner of Indonesia, invested US$4.6 billion in 2023.

Japanese investments have traditionally been directed towards the automotive, electronics, and manufacturing sectors, reflecting Japan’s industrial expertise and technological advancements.

5. Malaysia

Malaysia rounded out the top five with investments totaling US$4.1 billion.

As a close neighbor and member of ASEAN, Malaysia’s investment activities in Indonesia are broad-based, covering sectors such as palm oil, banking, and consumer goods.

source: Ministry of Communication and Information Technology Indonesia, as reported by Aseanbriefing

Also read: Indonesia’s Top Trading Partners (Export-Import)

Investment Contributions by Continent

In addition to individual countries, investments also varied significantly across different continents. Below is a summary of the top investment contributions by continent:

1. Asia

Asia was the largest contributor, with a total investment of US$41.4 billion. Key contributors included:

• Singapore: US$15.4 billion
• China: US$7.4 billion
• Japan: US$4.6 billion
• Hong Kong: US$6.5 billion
• Malaysia: US$4.1 billion

2. Europe

European countries invested a total of US$3.03 billion in Indonesia. Notable investors included:

• Netherlands: US$1.26 billion
• Germany: US$157.8 million
• United Kingdom: US$386.7 million
• France: US$302.8 million
• Switzerland: US$150.1 million

3. Americas

The Americas contributed US$4.66 billion, with the United States leading the way:

• United States: US$3.28 billion
• Canada: US$357.8 million
• Bermuda: US$248.5 million
• British Virgin Islands: US$652.1 million
• Mexico: US$1.04 million

4. Australia and Oceania

Australia and Oceania contributed US$674.5 million, with Australia being the dominant investor:

• Australia: US$545.2 million
• Samoa: US$62.9 million
• New Zealand: US$11.9 million

5. Africa

Africa contributed a total of US$540.7 million, with significant investments from:

• Mauritius: US$236 million
• Seychelles: US$272.3 million
• South Africa: US$10.6 million
• Morocco: US$1.32 million
• Libya: US$1.99 million

source: Ministry of Investment Indonesia/BKPM

Indonesia’s success in attracting foreign investment in 2023 underscores its growing appeal as a global investment destination. With substantial contributions from Asia, Europe, the Americas, Australia, and Africa, the country continues to diversify its economic partnerships.

Also read; Indonesia Negative Investment List (DNI): Latest Update

As Indonesia advances its infrastructure and industrial sectors, it is poised to remain a key player in the global investment landscape.

After looking at the data above, are you interested in investing and starting a business in Indonesia? If so, setting up a PT PMA offers a viable route to entering the Indonesian market, albeit with specific regulatory considerations.

By adhering to these regulations and understanding the intricacies of Indonesian corporate governance, companies can position themselves for long-term success in this burgeoning economy.

Also read: Top Foreign Investment Sectors in Indonesia

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