Indonesia
FDI FLOWING TO MANUFACTURING AS INDONESIA ACCELERATES INDUSTRIALIZATION
Indonesia’s foreign direct investment (FDI) flows are increasingly directed toward manufacturing industries such as metals, chemicals, machinery, and electronics, signaling stronger progress in the country’s industrialization agenda under President Prabowo Subianto. Research by BRI Danareksa Sekuritas shows that the share of FDI in the secondary sector has risen from 35.3 percent in 2018 to 59.6 percent in January–September 2025, reflecting a shift from raw material extraction to value-added processing within industrial clusters. Industry Minister Agus Gumiwang Kartasasmita emphasized that this trend demonstrates investor confidence and supports more equitable growth across regions, with Sulawesi, Maluku, and Kalimantan emerging as new industrial hubs. The report highlights that FDI outside Java generates a much larger multiplier effect on Gross Fixed Capital Formation (PMTB), with Rp1 trillion in investment producing IDR1.76 trillion in PMTB compared to only IDR140 billion in Java. This underscores the strategic importance of channeling investment into regions with higher capital needs and developing industrial clusters. The government is preparing incentives and facilitation measures to sustain momentum, while also prioritizing industrial transformation, workforce development, and high–value-added industries. Economists note that sustaining this trajectory will require close monitoring of capital expenditure cycles, industrial capacity utilization, and wage growth to ensure balanced and competitive development nationwide.Source: https://en.antaranews.com/news/393793/fdi-flowing-to-manufacturing-as-ri-accelerates-industrialization (ICE GIACARTA)
Fonte notizia: ANTARA NEWS, 26 November 2025
