Indonesia's 2Q26 FDI Rose 27.4% YoY to Record IDR 257.7 tn

Indonesia's 2Q26 FDI Rose 27.4% YoY to Record IDR 257.7 tn

Indonesia's foreign direct investment (FDI), excluding the financial and oil & gas sectors, rose 27.4% YoY to a record IDR 257.7 tn (USD 14.3 bn) in 2Q26, accelerating from 8.5% YoY growth in 1Q26 despite global uncertainty. The base metals industry attracted the largest inflows, followed by services and mining, while Singapore, Hong Kong, China, Japan, and Malaysia remained the largest investment sources. In 1H26, FDI increased 17.3% YoY to IDR 432.6 tn, with Singapore contributing the largest investment at USD 8.8 bn, followed by Hong Kong (USD 7.6 bn), China (USD 4.9 bn), Japan (USD 1.9 bn), and the US (USD 1.7 bn). (Trading Economics)

Indonesia's Downstream Investment Reached IDR 300.1 tn in 1H26

Indonesia's downstream investment realization reached IDR 300.1 tn in 1H26, increasing 6.9% YoY and accounting for 29.7% of total investment realization of IDR 1,010.6 tn, up from around 24–25% in 2023. The mineral sector remained the largest contributor with IDR 206 tn, led by nickel, bauxite, and copper projects, followed by plantations and forestry (IDR 54.4 tn), oil & gas (IDR 35.4 tn), and fisheries (IDR 3.8 tn). Investment outside Java accounted for 75.7% of total downstream investment, while the Govt. expects Danantara-backed projects to further accelerate downstream investment going forward. (Bloomberg Technoz)

Chinese Property Firm Invests IDR 1.25 Tn in Indonesia’s New Capital

Indonesia’s Nusantara Capital Authority (OIKN) secured its first direct investment from China after PT Star Bright International Investment committed IDR 1.25 tn to develop a mixed-use complex in the core govt. district of IKN. The project will include apartments, retail space, and offices, with construction targeted for completion by end-2026. OIKN said the investment reflects growing international confidence in IKN, while surrounding govt. infrastructure is expected to be completed by 2028. (Bisnis.com)

Indika Energy (INDY) Reportedly Explores Sale of Kideco Coal Unit

INDY is reportedly considering the sale of its 91%-owned coal subsidiary, PT Kideco Jaya Agung, in a potential transaction valued at >USD1 bn, according to Bloomberg. The co. has reportedly appointed a financial adviser and approached prospective buyers, although discussions remain preliminary and no final decision has been made. Kideco produced 30.7 mn tonnes of coal in 2024, and the potential divestment aligns with INDY’s broader diversification strategy beyond coal. (Bloomberg)