Domestic investment (PMDN) in Indonesia reached a record high in Q3 2025, marking the highest level in the last 18 years. According to the Ministry of Investment/BKPM, total investment realization reached IDR 491.4 trillion, growing 13.9% year-on-year, with domestic investment contributing 56.86%—its highest share since 2007. Research by NEXT Indonesia Center shows this is only the third time in two decades that PMDN surpassed 55%, with previous peaks in Q4 2005 and Q2 2007.
This shift suggests growing confidence among domestic investors, who are increasingly reinvesting capital within the country. Notably, 54.09% of the total investment—IDR 256.8 trillion—was made outside Java. Executive Director of NEXT Indonesia Center, Christiantoko, emphasized that consistent political and social stability, regulatory clarity, and ease of doing business are essential to sustain this trend. With investment contributing about 29% to GDP, increasing it beyond 30% annually could enable Indonesia to achieve economic growth of over 5%.
