Throughout 2024, investment in Indonesia's manufacturing sector reached IDR 721.3 trillion, marking a significant increase from the previous year. The sector played a major role in total investment, with foreign direct investment (FDI) and domestic investment nearly balanced. This growth reflects strong investor confidence in Indonesia's manufacturing industry. Such an increase is shown with Indonesia's manufacturing investment having reached IDR 721.3 trillion, consisting of IDR 194.3 trillion in domestic investment (PMDN) and IDR 527 trillion in foreign investment (PMA). This marks a 20.9% increase compared to the IDR 596.3 trillion realized in 2023.
This surge in investment was driven by the government's ongoing downstreaming policies, as well as rising domestic and international demand. Additionally, manufacturing activity showed improvement, with the Purchasing Managers' Index (PMI) rising from 49.6 in November to 51.2 in December 2024, indicating sector expansion. On Sunday (2/2/2025), Minister of Industry, Agus Gumiwang Kartasasmita, stated that "in the midst of ongoing global economic and political instability, Indonesia has achieved positive results in investment, including in the manufacturing sector. This indicates that investor confidence remains high in Indonesia’s business climate, and they see the country as a primary investment destination, offering a solid base for production and export hub." Henceforward, the government remains optimistic that this positive trend will continue, supported by efforts to enhance the investment climate and develop industrial infrastructure.
