Malaysia Is Fifth Largest Source Of Foreign Investment In Indonesia In 2Q 2026
By Nik Nurfaqih Nik Wil
JAKARTA, July 16 (Bernama) -- Malaysia was the fifth-largest source of foreign investment in Indonesia in the second quarter (2Q) of 2026, contributing US$700 million (US$1 = RM4.65), while Indonesia's realised investment totalled Rp511.8 trillion (Rp1 million = RM225).
Investment and Downstreaming Minister Rosan Roeslani said Hong Kong was its largest source of foreign investment in 2Q at US$5.5 billion, followed by Singapore (US$4.2 billion), China (US$1.7 billion) and Japan (US$900 million).
He said the rankings reflect the jurisdictions through which investments entered Indonesia, noting that funds recorded from Malaysia, Singapore and Hong Kong may not necessarily originate from companies based in those economies.
“The investment is recorded based on the country through which it enters Indonesia, so it does not necessarily originate from that country," he told a press conference, streamed live on YouTube, on Thursday.
Rosan said investment realisation in 2Q rose 7.1 per cent year-on-year (y-o-y) to Rp511.8 trillion, creating 742,223 jobs, up 5.1 per cent from the same period last year.
Total investment realised in the first half (H1) of 2026 was Rp1,010.6 trillion, up 7.2 per cent y-o-y, representing 49.5 per cent of its annual target. It generated employment for 1,448,862 people, a 15 per cent rise from a year earlier, he said.
Singapore remained as Indonesia's largest foreign investor in H1 2026, with total realised investment of US$8.8 billion, followed by Hong Kong (US$7.8 billion), China (US$3.9 billion), Japan (US$1.9 billion) and the United States (US$1.7 billion), he said.
Rosan said the government continues to improve the investment climate through regulatory reforms, including Government Regulation No 28 introduced last October, which he said had provided greater certainty in the licensing process. This was well received by investors.
“Our neighbouring countries are also reforming their policies and regulations, so Indonesia must continue to do the same,” he said.
Investment in downstream industries reached Rp152.7 trillion in 2Q, accounting for 29.8 per cent of total realised investment, up 5.7 per cent year-on-year.
Rosan said bauxite overtook nickel as the largest downstream investment commodity in 2Q, driven by several new projects undertaken by domestic and foreign investors.
He said the government will continue expanding downstream development beyond minerals to include palm oil, rubber, timber, silica sand and other commodities identified in Indonesia's downstream blueprint.
-- BERNAMA