Kearney's Global Business Policy Council has released the Foreign Direct Investment (FDI) Confidence Index 2025, providing insights into investor sentiment regarding foreign direct investment (FDI) flows over the next three years. Indonesia was ranked 12th in the top 15 Emerging Market Index. Investors highlighted several key reasons for investing in Indonesia, including the talent and skills of its workforce, its status as the world's largest nickel producer, and its significant production of copper, gold, bauxite, and industrial metals. By 2025, investor interest is expected to increase to 21% from 17%. Previously, in 2024, Indonesia attracted USD 13.6 billion in investment. Indonesia has emerged as an attractive location for greenfield projects, as evidenced by an investment of USD 11 billion from Xinyi Group, a Chinese manufacturer of glass and solar products.
The Asia-Pacific region's development trends highlight the resilience of innovation and the stability of its markets, even in the face of recent tariff measures from the United States. Investment in innovation is key to driving sustainable and regenerative growth in the face of evolving global dynamics. However, businesses also need to do scenario planning when facing tariffs to prepare for the risks that are likely to emerge. These include trade risks, disruptions to supply chains, rising commodity costs and prices, and regulations. International trade conflicts between the US and China are also a risk. While the Asia Pacific region continues to demonstrate considerable strength, Kearney has also identified emerging challenges in the context of a shifting global landscape. The region is believed to be well-prepared to unlock long-term value amid global uncertainty.
