The Ministry of Investment/BKPM reported an investment realization of IDR 942.9 trillion in the first half of 2025, equivalent to 49.5% of the annual target of IDR 1,905.6 trillion. This marks a 13.6% year-on-year (YoY) increase and has generated 1.26 million new jobs.
Domestic Direct Investment (DDI) led with IDR 510.3 trillion (54.1%), outpacing Foreign Direct Investment (FDI) at IDR 432.6 trillion (45.9%), reflecting strong confidence from local investors.
Geographically, investment outside Java reached IDR 476 trillion (50.5%), slightly surpassing Java’s IDR 466.9 trillion (49.5%), indicating improved economic distribution across regions.
– Kontan, 29 July 2025
S&P Affirms Indonesia’s Credit Rating at BBB with Stable Outlook
On July 29, 2025, S&P Global Ratings reaffirmed Indonesia’s long-term sovereign credit rating at BBB with a stable outlook. This rating is one notch above the lowest investment grade, reflecting solid global investor confidence in Indonesia’s macroeconomic stability.
Future upgrades will depend on the country’s ability to improve external debt repayment capacity, either through stronger export performance or reduced reliance on foreign financing.
– Kontan, 29 July 2025
Indonesia’s Manufacturing Still in Contraction at 49.2, Though Improving in July 2025
Indonesia’s manufacturing sector remained in contraction territory in July 2025, with the Manufacturing PMI recorded at 49.2, up from 46.9 in June. Although showing signs of improvement, the figure remains below the 50 expansion threshold, indicating continued weakness, especially in output, new orders, and exports.
According to S&P Global, this marks the fourth consecutive month of contraction, exacerbated by workforce reductions, restrained purchasing, rising input costs, and currency depreciation.
– Kontan, 1 August 2025
Trade Surplus Continues for 62 Months, June 2025 Posts US$4.10 Billion
Indonesia posted a trade surplus of US$4.10 billion in June 2025, slightly down from May’s US$4.30 billion. This marks the 62nd consecutive monthly surplus since May 2020.
The surplus was driven by non-oil and gas commodities (US$5.22 billion), mainly animal/vegetable fats (HS 15), mineral fuels (HS 27), and iron & steel (HS 72). Meanwhile, the oil and gas sector recorded a deficit of US$1.11 billion, although this showed improvement from the previous month.
– Kontan, 1 August 2025
Government Accelerates DME Projects Under SEZ Scheme to Reduce LPG Imports
To reduce Indonesia’s dependence on imported LPG—currently costing IDR 80 trillion annually—the government is accelerating coal gasification projects to produce Dimethyl Ether (DME) by designating several strategic projects as Special Economic Zones (SEZs). These projects are targeted to begin within 2–3 years, supported by capital expenditure incentives for equipment and infrastructure.
However, economic viability remains the main challenge. According to the Indonesian Coal Mining Association (APBI), high technology costs and uncertain offtaker markets are key obstacles. Of the 18 mineral downstreaming projects worth IDR 618.3 trillion, 6 DME projects are prioritized, planned across the following locations:
- (A) Bulungan, North Kalimantan
- (B) East Kutai, East Kalimantan
- (C) Kotabaru, South Kalimantan
- (D) Muara Enim, South Sumatra
- (E) PALI, South Sumatra
- (F) Banyuasin, South Sumatra
According to the Downstream Task Force, total investment for all six DME projects is estimated at IDR 164 trillion.
– Kontan, 31 July 2025
Community Oil Wells Could Boost Production by 100,000 Barrels per Day
Indonesia’s upstream oil and gas regulator (SKK Migas) estimates that community-run oil wells could contribute up to 100,000 barrels per day (bpd) following the implementation of Energy Ministry Regulation No. 14 of 2025.
SKK Migas Head Djoko Siswanto stated that 30,000 such wells across three provinces are ready to be tapped this year, with expected output of 1–5 bpd per well. This could result in a total additional output of 90,000–100,000 bpd—potentially more if wells from other provinces are included. Oil from these wells will be purchased by PSC contractors at 70–80% of the Indonesian Crude Price (ICP).
– Kontan, 29 July 2025
Government to Launch National Family Office Initiative in 2025
Indonesia is finalizing the establishment of a national Family Office framework as part of efforts to attract global capital flows and strengthen the domestic investment ecosystem.
According to National Economic Council Chair Luhut Binsar Pandjaitan, the plan is underway and expected to launch this year, pending final approval from President Prabowo Subianto.
Luhut emphasized the urgency for Indonesia to establish its own Family Office to remain competitive with neighboring countries like Malaysia, which has already implemented similar initiatives. Indonesia plans to offer more attractive incentives to draw global investors and reinforce its position as a regional financial hub.
– Kontan, 28 July 2025