Indonesia Leads EM Rally as Carry Appeal, Growth Lure Investors

[Indos]

US tariffs may cut Indonesia growth by up to 0.5 percentage points, minister says​

• Thursday, 10 Apr 2025
  3:06 PM MYT

KUALA LUMPUR: Planned U.S. tariffs could reduce Indonesia's potential growth by 0.3 to 0.5 percentage points, but a 90-day pause in implementing the levies allows time to discuss solutions, Indonesia's finance minister told Reuters on Thursday.

Minister Sri Mulyani Indrawati said Indonesia welcomes the 90-day pause as it provided an opportunity to mitigate or avoid the downside risks from tariffs to economic growth.


"The estimated current situation, before the pause, could reduce our potential growth by between 0.3% of GDP up to 0.5%," she said in an interview on the sidelines of the ASEAN finance ministers and central bank governors meeting in Malaysia.

Indonesia has set a 5.2% GDP growth target this year versus 5.03% achieved last year. President Prabowo Subianto, however, wants to jack up the growth to 8% by 2029.


Indonesia's authorities have said the U.S. tariffs would have a limited impact on the economy, which relies more on the domestic market.

The U.S. was Indonesia's third-biggest export destination as of last year, receiving shipments worth $26.3 billion, according to Indonesian government data.

Sri Mulyani said Indonesia would use the 90-day tariffs pause to come up with a framework of cooperation that was "mutually respected" by other countries.

"We have to continue to be very prudent... Expenditure should be made more efficient, well-targeted and effective in supporting growth on the monetary side."

She said the recent pressure on the rupiah currency, which is at all-time lows, was temporary, adding the government remained focused on indicators such as corporate debt and government debt-to-GDP.

The rupiah strengthened as much as 0.83% to 16,720 a dollar on Thursday as of 0512 GMT, according to LSEG data, after hitting an all time low for two days straight since the market reopened on Tuesday. - Reuters

US tariffs may cut Indonesia growth by up to 0.5 percentage points, minister says

KUALA LUMPUR: Planned U.S. tariffs could reduce Indonesia's potential growth by 0.3 to 0.5 percentage points, but a 90-day pause in implementing the levies allows time to discuss solutions, Indonesia's finance minister told Reuters on Thursday.

www.thestar.com.my

 

[Indos]

Indonesia’s $63 billion social security fund eyes doubling of equities exposure​

State-owned fund BPJS Ketenagakerjaan has been increasing its investment gradually in stocks with big market capitalisation.PHOTO: AFP



April 11, 2025


JAKARTA – Indonesia’s US$48 billion (S$63.3 billion) social security fund BPJS Ketenagakerjaan, the country’s largest institutional investor, aims to raise the share of local equities in its portfolio to up to 20 per cent within three years, a top official told Reuters on April 11.

Asked about this week’s local stock market tumble following the global turmoil caused by US tariffs, Mr Edwin Ridwan, the agency’s director of investment development, said it had created room for the fund to invest in undervalued shares.

The state-owned fund has been increasing its investment gradually in stocks with big market capitalisation, he said, in sectors such as banking, telecommunications, commodities and consumer goods.

“These are the conditions where people are selling, if we look at history... whenever the market overshoots, people are selling, it’s the best time to buy,” he said in an interview, referring to the financial crises of 1998 and 2008 and the Covid-19 pandemic.

“The window has started to open up for us to increase our exposure to equities, because we need volume, we need liquidity, and with everybody selling, that liquidity is being provided.”

Mr Edwin added that the fund was targeting a 13 per cent year-on-year increase in returns in 2025.

BPJS Ketenagakerjaan’s current exposure to equities was around 10 per cent or equivalent to US$4.8 billion, either directly in the stock market or through mutual funds, it said, adding that its target is to expand that to between 15 per cent and 20 per cent within three years. The largest portion is invested in bonds, and the rest is in deposits and other instruments.

Indonesia’s stock market tanked when it reopened on April 8 after an extended holiday break, triggering a 30-minute trading halt, in response to the global turmoil over US President Donald Trump’s tariffs announcement days earlier. The market has since regained some of its losses.

President Prabowo Subianto is looking to increase the state’s role in achieving its 8 per cent growth target, including via the setting up of a new sovereign wealth fund managing more than US$900 billion in assets as well as a state firm to run confiscated palm plantations.

Since the global turmoil hit Indonesian markets, the country has also eased buyback rules for publicly listed companies, including state-run firms, and Bank Indonesia intervened “aggressively” to support a plummeting rupiah.

Asked whether there was any order from the government for BPJS to support the falling stock market, Mr Edwin said the agency was “quite independent”.

‘Too big for the market’​

The agency has been trying for years to get government approval to invest in overseas financial markets, especially equity markets, Mr Edwin said, citing its need to have more options for its large funds.

“Basically we have a very limited universe... so we can’t get in and out easily and we can’t buy when other people buy,” he said, referring to the risk of crowding out the market.

The agency’s assets under management have been expanding at a rate of 13 per cent to 14 per cent per year, and it makes up to 10 trillion rupiah (S$783 million) per month in returns, Mr Edwin said, explaining why it needs to find more investment instruments.

Possible pressure on the rupiah has been one consideration against overseas investment, Mr Edwin said, but he added that foreign exchange supply could be improved via return repatriation. REUTERS

Indonesia’s $63 billion social security fund eyes doubling of equities exposure

BPJS Ketenagakerjaan has been increasing its investment in stocks with big market capitalisation. Read more at straitstimes.com. Read more at straitstimes.com.

www.straitstimes.com

 

[Indos]

Indonesia, Qatar Agree on $4B Co-Investment Fund Led by Danantara, QIA​

Alfi Dinilhaq
April 16, 2025 | 10:28 am



Jakarta. Indonesia and Qatar have agreed to establish a $4 billion joint investment fund following President Prabowo Subianto’s official visit to Doha on Sunday, April 13. The initiative is aimed at deepening bilateral strategic cooperation and accelerating development in Indonesia through a co-investment scheme.


The fund will be managed by Indonesia’s state-owned investment agency Danantara Indonesia in partnership with the Qatar Investment Authority (QIA). Both nations will contribute equally, with $2 billion each, targeting high-priority sectors such as downstream industrial processing, renewable energy, healthcare, and technology.


“His Highness the Emir of Qatar has expressed a strong commitment to invest through Danantara Indonesia. We agreed to strengthen this partnership and begin implementation immediately,” President Prabowo said after meeting Sheikh Tamim bin Hamad Al Thani at the Amiri Diwan Palace in Doha.

Danantara CEO Rosan Roeslani welcomed the agreement and said the agency was ready to manage the fund with full accountability.

“This joint fund reflects the high level of trust our global partners have in Indonesia’s institutional capacity. We are committed to ensuring each project delivers long-term, strategic impact for sustainable development,” Rosan said in an official statement.


The fund is expected to serve as a catalyst for economic growth and job creation, while also reinforcing Indonesia’s ties with Qatar.

Since its inception in February, Danantara has actively invited global investors to participate in co-investment projects in key sectors. The agency plans to consolidate state-owned enterprise assets and mobilize an initial $20 billion in capital to support ventures in mineral processing, renewable energy, petrochemicals, and more.


While President Prabowo did not specify which projects Qatar is targeting, senior advisor Luhut Binsar Pandjaitan previously revealed that interest from other Gulf investors includes joint ventures in Indonesia’s green energy transition.

Indonesia, Qatar Agree on $4B Co-Investment Fund Led by Danantara, QIA

Indonesia and Qatar establish a $4B joint fund to invest in energy, tech, and healthcare, following President Prabowo's visit to Doha.

jakartaglobe.id

 

[Indos]

Qatar to Build 1 Million Apartments in Indonesia Starting April 2025​

Erfan Maruf

February 26, 2025 | 4:35 pm

Jakarta. Qatar will begin constructing 1 million apartment units in Indonesia in April 2025, as part of its commitment to support the 3 million homes program, a government initiative to address the country’s housing shortage.


According to Housing Task Force Head Hashim Djojohadikusumo, the Qatari investment for the first phase is estimated at $18 billion to $20 billion (approximately Rp 295 trillion to Rp 328 trillion).


“The first project will start in April, after Eid. Qatari investors are bringing capital to build 1 million apartments,” Hashim said on Wednesday.


A memorandum of understanding for the project was signed on Jan. 8 at the Merdeka Palace in Jakarta by Housing Minister Maruarar Sirait and Sheikh Abdulaziz Al Thani of Qatar’s Qilaa International Group.

Read More: Qatar Agrees to Invest in 1 Million Homes in Indonesia

Beyond the initial phase, Qatar plans to expand its investment to fund the construction of 3 to 5 million homes and apartments in both urban and rural areas.

Additionally, Abu Dhabi’s Mubadala Investment Company is expected to invest in 1 million apartment units, further strengthening foreign participation in the program.


Hashim said interest from international investors is growing, with India, Singapore, and Turkey also expressing willingness to invest in Indonesia’s housing sector.


Indonesia is offering idle state-owned land to investors, including properties managed by railway operator Kereta Api Indonesia, housing developer Perumnas, construction firm PTPP, as well as the Finance Ministry and the State Secretariat. These lands, mostly located in urban areas, will be surveyed by Qatari representatives to determine the initial development sites.


President Prabowo Subianto aims to build 2 million homes in villages and 1 million in cities annually as part of his effort to reduce Indonesia’s housing backlog, which currently stands at 12.7 million units.

Qatar to Build 1 Million Apartments in Indonesia Starting April 2025

Qatar will invest up to $20 billion to build 1 million apartments in Indonesia starting April 2025.

jakartaglobe.id

 

[Indos]

New Indonesia sovereign wealth fund to invest $20 billion in projects​

By Stefanno Sulaiman and Ananda Teresia
February 24, 2025
12:22 PM GMT+7
Updated 2 months ago

• Fund to invest in nickel, bauxite and copper processing, AI, renewables
• Prabowo pledges transparency in fund's management
• Danantara Indonesia to manage estimated $900 billion of assets
• Danantara to be separate from exisiting fund Indonesia Investment Authority

JAKARTA, Feb 24 (Reuters) - Danantara Indonesia will invest $20 billion in a wide range of projects from metal processing to artificial intelligence, President Prabowo Subianto said on Monday, as he launched the country's new sovereign wealth fund.

At a lavish ceremony, Prabowo formally launched the Daya Anagata Nusantara Indonesia fund, or Danantara Indonesia, which is expected to manage more than $900 billion worth of assets to help drive development in Southeast Asia's largest economy and fulfil his promise of boosting growth to 8%, from about 5% now.

Danantara will be the country's second sovereign wealth fund after the Indonesia Investment Authority and will operate separately, its chief said.
Danantara will hold government stakes in state firms and is intended to operate like Singapore's investment arm Temasek, but it faced criticism from thousands of student protesters last week, who raised concerns over potential mismanagement.

"Danantara Indonesia is a strategic and efficient solution to optimise state-owned enterprises. Not only are we going to invest state companies' dividend payments into industries that support long-term growth, but we will also transform our state companies to become world leaders in their respective sectors," Prabowo said.

In its first round of investments, Danantara will put $20 billion into more than 20 projects in nickel, bauxite and copper processing, artificial intelligence development, oil refineries, renewables, as well as food production, the president told hundreds of attendees, including foreign dignitaries, business people and politicians.

Prabowo pledged transparency in the fund's management, saying Danantara could be "audited any time by anyone because it is owned by the people".

Danantara will form two units, a holding company that oversees state companies' operations and an investment arm, Prabowo's spokesperson said.

Investment Minister Rosan Roeslani, a former businessman who led Indonesian investment firm Recapital Group, will also serve as Danantara's chief executive, while Pandu Sjahrir, managing partner at asset management firm Indies Capital and founding partner of venture fund AC Ventures, was named head of Danantara's investment arm.

Rosan confirmed the Indonesia Investment Authority will operate separately from Danantara. INA currently manages $10.5 billion worth of assets, including funds from co-investors, such as Dutch pension fund APG Asset Management and Abu Dhabi Investment Authority, according to its website.

Some of the most prominent state companies that will be managed by Danantara include leading lenders Bank Mandiri (BMRI.JK)
, opens new tab, Bank Rakyat Indonesia (BBRI.JK), opens new tab, and Bank Negara Indonesia (BBNI.JK), opens new tab, state energy firm Pertamina, utility Perusahaan Listrik Negara and telco firm Telkom Indonesia (TLKM.JK)
, opens new tab.

Reporting by Stefanno Sulaiman and Ananda Teresia; Additional reporting by Fransiska Nangoy; Writing by Gayatri Suroyo; Editing by John Mair, Martin Petty
Our Standards: The Thomson Reuters Trust Principles.

https://www.reuters.com/world/asia-pacific/indonesias-prabowo-officially-establishes-new-sovereign-wealth-fund-2025-02-24/

 

[Indos]

Saudi Arabia wants to invest in Mind ID (Indonesian SOE mining holding) and Vale Indonesia (Mind ID has biggest shares in Vale Indonesia, other shares holders are Brazilian company (Vale) and Japan)

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[Indos]

Saudi Arabia also approach Indonesian private sectors for investment and cooperation

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[Indos]

Indonesia Awards Five Major Oil & Gas Blocks to Boost Energy Security​

By Editorial Dept - Apr 16, 2025, 9:48 AM CDT


Indonesia has awarded five strategic oil and gas blocks to international and domestic players in a bid to reverse its decade-long production decline and bolster national energy security, the country’s energy ministry announced on Wednesday.

The awards are part of Indonesia’s broader upstream revival strategy, with nearly 60 additional blocks expected to be offered over the coming years. “The government hopes these auction winners will be able to contribute to Indonesia's energy security ahead,” said Tri Winarno, a senior official at the Ministry of Energy and Mineral Resources.

A consortium of eight companies—including Enquest Petroleum Production Malaysia, BP Exploration Indonesia, and CNOOC Southeast Asia—secured the high-potential Gaea and Gaea II blocks in West Papua. Gaea is estimated to hold 9.6 billion barrels of oil or 71.8 trillion cubic feet of gas, while Gaea II carries potential reserves of 8.5 billion barrels of oil or 35.1 tcf of gas.


State energy firm Pertamina Hulu Energy, Malaysia’s Petronas (via PC North Mandura II), and South Korea’s SK Earthon were awarded the Binaiya block offshore Maluku, which contains estimated resources of 6.7 billion barrels of oil and 15 tcf of gas.


Meanwhile, PC North Madura II and SK Earthon, in partnership with Japan’s INPEX Corporation, secured the Sepang block offshore East Java. The Kojo block in the Makassar Strait was awarded to Armada Etan.

Once a key OPEC member and oil exporter, Indonesia has increasingly relied on imports to meet domestic energy demand. The latest block awards aim to attract investment and accelerate exploration, even as Indonesia opens the door to more U.S. energy imports amid ongoing trade discussions.

Indonesia Awards Five Major Oil & Gas Blocks to Boost Energy Security | OilPrice.com

ndonesia has awarded five strategic oil and gas blocks to international and domestic players in a bid to reverse its decade-long production decline

oilprice.com

 

[Indos]

Danantara to prioritize investment in 9 key sectors, boost RI's economic edge: CIO​

• Published on 25/04/2025 GMT+7​

• Reading time 3 minutes​

• Author: Julian Isaac​

• Editor: Imanuddin Razak​

Chief Investment Officer (CIO) of the Daya Anagata Nusantara Investment Management Agency (BPI Danantara), Pandu Patria Sjahrir, said that there are 9 sectors that will be the agency’s investment priorities.


He said the selection of this sector is based on the economic impact provided, and the selection of priority sectors is adjusted to the vision and mission that are the guidelines for Danantara.

"These are some of the sectors that we will activate in the next 12 months. We will immediately start the process, related to finance, and investment," Pandu said on Thursday, April 24, 2025.

He cited that the first sector that will be a priority is industrial downstream, which includes minerals such as nickel, tin, bauxite and others. Also included is oil and gas, such as petrochemicals and ammonia as well as plantations, such as biodiesel and bioavtur.

Furthermore, the upstream sector includes oil and gas production. The third sector is manufacturing. Through Danantara, it will prioritize the utilization of China+1 opportunities in the electric vehicle (EV) and renewable energy ecosystems.

Then the food security sector which includes aquaculture, protein, food plantations, including agricultural technology. The fifth is digital infrastructure which includes data centers, connectivity, fiber optics, submarine cables, and tower consolidation, while the sixth is the water and waste infrastructure sector.

Pandu said that Danantara will prioritize investment in water dams, water management and new landfills.

Then the energy security sector which includes renewable energy, power plants, transmission, petrochemical refineries and bioenergy. Next is the strategic real estate sector with investment in sports complexes, industrial areas and real estate.

Finally, there are new sectors such as artificial intelligence (AI) computing data centers, advanced semiconductor manufacturing and so on.

"We will soon start the process related to finance and investment," Pandu said.

Investment requirements

Pandu cited that there are seven key indicators for Danantara in carrying out investment projects. The first is the use of endowment funds related to Indonesia's right-to-win in certain sectors. Such as natural resources and Indonesia's reserves which are the key. While in labor-intensive industries, the determining factor is the availability of labor.

The second indicator is related to the multiple impact. He said this indicator is related to the calculation of the Gross Domestic Product (GDP) generated by every dollar of investment in a certain sector will have a multiple effect on other affected sectors.

The third indicator is the opportunity to create jobs. Danantara estimates the average number of jobs created for each investment made in the sector. The more labor absorbed, the greater its strategic value for Indonesia's economic development.

Then there is the country's competitiveness, which is seen from the influence of its investment on increasing Indonesia's competitiveness in the global value chain, with sectors that make Indonesia more competitive in the international market receiving high priority.

Next is national security. Pandu said that investments that have an impact on important resilience factors for the country such as food security and health service resilience will be a priority.

Sixth, Danantara will identify disruptive trends that can help Indonesia surpass other countries. Sectors that have innovative and transformative potential are considered great opportunities for the future. Finally, this investment service will assess the average return on historical shareholder investment in the sector.

"From this indicator we can see the investment project. We focus on Indonesia. In my language, right to win, because this is our business model," Pandu concluded.

Danantara to prioritize investment in 9 key sectors, boost RI's economic edge: CIO

CIO of Danantara, Pandu Patria Sjahrir, said that there are 9 sectors that will be the agency’s investment priorities.

indonesiabusinesspost.com

 

[Indos]

Indonesia's investment realization up 15.9 pct in Q1 2025​

Source: Xinhua


Editor: huaxia


2025-04-24 18:53:17

JAKARTA, April 24 (Xinhua) -- Indonesia recorded an investment realization of 456.2 trillion rupiahs (around 27 billion U.S. dollars) in the first quarter of 2025, marking a 15.9 percent year-on-year increase from 23.8 billion dollars, according to Rosan Roeslani, minister of investment and downstreaming.

(wrong data, it should be 465 trillion Rupiah = 29 billion USD - I have reuters source to back up my claim)

"This first quarter realization accounts for 24.4 percent of the 2025 target of 1,905.6 trillion rupiahs (112.8 billion dollars)," said Rosan at a press conference on Wednesday.

The investment consisted of 49.5 percent foreign direct investment and 50.5 percent domestic investment.

Five Asian countries and regions dominated the investment inflows, with Singapore leading at 4.6 billion dollars, followed by China's Hong Kong at 2.2 billion dollars, China at 1.8 billion dollars, and Malaysia and Japan with 1 billion dollars each.

The most attractive sectors for investors were basic metal industries, transportation, mining, services, and industrial or office zones. ■

Indonesia's investment realization up 15.9 pct in Q1 2025

Indonesia's investment realization up 15.9 pct in Q1 2025-

english.news.cn

---------------

Indonesia's Q1 FDI up 12.7% y/y to nearly $14 bln, minister says​

By Reuters
April 23, 20257:37 PM GMT+7
Updated 3 days ago

JAKARTA, April 23 (Reuters) - Indonesia's foreign direct investment in the first three months of 2025 reached 230.4 trillion rupiah ($13.67 billion), up around 12.7% year-on-year in rupiah terms, investment minister Rosan Roeslani said on Wednesday.

While the growth pace remained solid, it was the slowest in five quarters, according to LSEG data. The FDI data excludes investment in the financial and oil and gas sectors.

Total investment, including from domestic investors, stood at 465.2 trillion rupiah (29 billion USD), up 15.9% year-on-year, creating more than 594,000 jobs.

"This shows that the international world and domestic investors are still confident to invest, because an investment is a long term commitment," Rosan told a press conference, adding global market uncertainty due to geopolitical and trade tensions were influencing investment decisions.

Southeast Asia's largest economy has seen rising foreign investor interests in the mining and metal smelting industries after it banned exports of nickel ore in 2020.

But news of the exit of South Korea's LG Energy Solution from a major electric vehicle battery project worth more than $8 billion has grabbed headlines this week.

LGES said on Monday it has decided to withdraw from the project citing various factors, including market conditions and investment environment.

Rosan, however, said Indonesia in January had sent a letter to LG Group executives terminating the deal because LG had taken too long to realise the project, which had been agreed in late 2020 and include investments across the EV battery supply chain.

China's Zhejiang Huayou Cobalt will replace LGES as a strategic investor in the project, Rosan said, echoing an earlier statement by Indonesia's energy minister Bahlil Lahadalia. Huayou's Indonesian unit did not respond to request for comment.

The biggest sources of FDI in the first quarter were Singapore, Hong Kong, China, Malaysia and Japan, Rosan said.

https://www.reuters.com/world/asia-pacific/indonesias-q1-fdi-up-127-yy-nearly-14-bln-minister-says-2025-04-23/

 

[Indos]

Korean Firms Commit $1.7 Billion in New Investments Following Meeting with Prabowo​

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Ichsan Ali
April 28, 2025 | 5:26 pm

Jakarta. Business leaders from the Federation of Korean Industries (FKI) have pledged a new investment of $1.7 billion in Indonesia following a meeting with President Prabowo Subianto at the State Palace in Jakarta on Monday.


The total investment of the 19 South Korean companies represented by FKI has so far reached $15.4 billion in Indonesia, Chief Economic Minister Airlangga Hartarto said after the meeting.


"An additional $1.7 billion will be invested by the 19 companies that met with the President today," Airlangga said.


Among the Korean investors were big names such as Lotte Chemicals, KB Financial, Hyundai Motor, and POSCO Holdings.

"Lotte Chemicals, for example, plans to inaugurate a petrochemical factory in September or October this year. They have also offered a participating interest to Indonesia, which the President has approved in principle. Danantara will be tasked with assessing and following up on this investment opportunity," Airlangga said, referring to Indonesia’s sovereign wealth fund, Danantara.


Danantara CEO Rosan Roeslani and Vice President Gibran Rakabuming Raka were also present at the meeting.

Airlangga said KB Financial reported that its Indonesian operations have turned profitable after four years, while Hyundai Motor conveyed that its local operations are running smoothly.


Meanwhile, POSCO is preparing for the second phase of its integrated steel project in collaboration with Indonesia’s state-owned Krakatau Steel, aiming for a production capacity of 10 million tons.


In the manufacturing sector, EcoPro has invested $500 million in a nickel smelter in Morowali, while KCC Glass plans to expand its operations in Indonesia.


Additionally, LX International will invest $500 million in coal and nickel mining as well as plantations in the country.


President Prabowo listened to the presentations from the Korean companies one by one and demonstrated his commitment to strengthening economic cooperation between Indonesia and South Korea, Airlangga said.

The meeting took place shortly after the Indonesian government removed South Korea’s LG Energy Solution from a $9.8 billion electric vehicle battery project consortium -- comprising Indonesia Battery Corporation (IBC) and state miner Aneka Tambang (Antam) -- due to prolonged delays.


"We didn’t discuss LG today; the focus was on Lotte, Hyundai, and other Korean companies," Airlangga said.

Korean Firms Commit $1.7 Billion in New Investments Following Meeting with Prabowo

The total investment of the 19 South Korean companies represented by FKI has so far reached $15.4 billion in Indonesia.

jakartaglobe.id

 

[Indos]

Indonesia's investment realization up 15.9 pct in Q1 2025​

Source: Xinhua


Editor: huaxia


2025-04-24 18:53:17

JAKARTA, April 24 (Xinhua) -- Indonesia recorded an investment realization of 456.2 trillion rupiahs (around 27 billion U.S. dollars) in the first quarter of 2025, marking a 15.9 percent year-on-year increase from 23.8 billion dollars, according to Rosan Roeslani, minister of investment and downstreaming.

(wrong data, it should be 465 trillion Rupiah = 29 billion USD - I have reuters source to back up my claim)

"This first quarter realization accounts for 24.4 percent of the 2025 target of 1,905.6 trillion rupiahs (112.8 billion dollars)," said Rosan at a press conference on Wednesday.

The investment consisted of 49.5 percent foreign direct investment and 50.5 percent domestic investment.

Five Asian countries and regions dominated the investment inflows, with Singapore leading at 4.6 billion dollars, followed by China's Hong Kong at 2.2 billion dollars, China at 1.8 billion dollars, and Malaysia and Japan with 1 billion dollars each.

The most attractive sectors for investors were basic metal industries, transportation, mining, services, and industrial or office zones. ■

Indonesia's investment realization up 15.9 pct in Q1 2025

Indonesia's investment realization up 15.9 pct in Q1 2025-

english.news.cn

---------------

Indonesia's Q1 FDI up 12.7% y/y to nearly $14 bln, minister says​

By Reuters
April 23, 20257:37 PM GMT+7
Updated 3 days ago

JAKARTA, April 23 (Reuters) - Indonesia's foreign direct investment in the first three months of 2025 reached 230.4 trillion rupiah ($13.67 billion), up around 12.7% year-on-year in rupiah terms, investment minister Rosan Roeslani said on Wednesday.

While the growth pace remained solid, it was the slowest in five quarters, according to LSEG data. The FDI data excludes investment in the financial and oil and gas sectors.

Total investment, including from domestic investors, stood at 465.2 trillion rupiah (29 billion USD), up 15.9% year-on-year, creating more than 594,000 jobs.

"This shows that the international world and domestic investors are still confident to invest, because an investment is a long term commitment," Rosan told a press conference, adding global market uncertainty due to geopolitical and trade tensions were influencing investment decisions.

Southeast Asia's largest economy has seen rising foreign investor interests in the mining and metal smelting industries after it banned exports of nickel ore in 2020.

But news of the exit of South Korea's LG Energy Solution from a major electric vehicle battery project worth more than $8 billion has grabbed headlines this week.

LGES said on Monday it has decided to withdraw from the project citing various factors, including market conditions and investment environment.

Rosan, however, said Indonesia in January had sent a letter to LG Group executives terminating the deal because LG had taken too long to realise the project, which had been agreed in late 2020 and include investments across the EV battery supply chain.

China's Zhejiang Huayou Cobalt will replace LGES as a strategic investor in the project, Rosan said, echoing an earlier statement by Indonesia's energy minister Bahlil Lahadalia. Huayou's Indonesian unit did not respond to request for comment.

The biggest sources of FDI in the first quarter were Singapore, Hong Kong, China, Malaysia and Japan, Rosan said.

https://www.reuters.com/world/asia-pacific/indonesias-q1-fdi-up-127-yy-nearly-14-bln-minister-says-2025-04-23/

Investment realization in more detail for Q1 (January-March) 2025

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[Indos]

LG to Reportedly Invest Another $1.7 Billion in Indonesian Battery Cell Plant​

Jayanty Nada Shofa

April 29, 2025 | 4:41 pm


Jakarta. A minister unveiled South Korean conglomerate LG’s plans to invest another $1.7 billion in a battery cell joint venture in Indonesia on Tuesday, not long after the company cancelled some of its major investments in the country.


LG recently made headlines after it withdrew from Indonesia’s multibillion-dollar battery supply chain megaproject, citing unfavorable market conditions. The company, however, decided to keep participating in the battery cell project that it ran via a joint venture scheme.


Last year, HLI Green Power -- the joint venture in question -- officially launched its battery cell factory in West Java’s Karawang. Aside from the battery manufacturer LG Energy Solution, HLI Green Power brings together Seoul-based auto giant Hyundai and local firm Indonesia Battery Corporation (IBC). Investment Minister Rosan Roeslani said that the investments made in the battery cell joint venture were worth $1.1 billion, and LG would likely more than double these numbers soon.


“I will visit the [Karawang] plant tomorrow. Because [LG] had initial talks with us about their interest in investing another $1.7 billion. This will raise the total investment in [the battery cell] joint venture to $2.8 billion,” Rosan told a news conference in Jakarta.

“I believe that LG can quickly realize the [$1.7 billion] additional investment. Because we are actively discussing with LG, and we have received positive responses to develop the second phase of the battery cell investment," Rosan said.

Former President Joko “Jokowi” Widodo launched the Karawang project in July 2024, during which he claimed that it was Southeast Asia’s first and largest EV battery cell plant. Reports released during its launch said the first phase of the development cost around $1 billion, and would produce 10 gigawatt/hour (GWh) battery cells -- enough to power 150,000 EVs. The second phase will take up a $2 billion in investment, thus doubling the capacity to 20 GWh.


Official statistics showed that Indonesia amassed nearly $683.3 million in investments from South Korea in Q1 2025. This made South Korea as Indonesia’s seventh-largest source of foreign direct investment, just behind the US (about $802.2 million). The Southeast Asian country attracted Rp 230.4 trillion (around $13.7 billion) in foreign direct investment over the said three-month period.

LG to Reportedly Invest Another $1.7 Billion in Indonesian Battery Cell Plant

LG recently made headlines after it withdrew from Indonesia’s multibillion-dollar battery supply chain megaproject.

jakartaglobe.id

 

[Indos]

GoTo Turns Profitable in Q1 2025 as Fintech and On-Demand Units Surge​

Muhammad Ghafur Fadillah

April 29, 2025 | 6:41 pm

Jakarta. Publicly listed tech company GoTo Gojek Tokopedia (GOTO) reported a significant turnaround in the first quarter of 2025, posting an adjusted EBITDA profit of Rp 393 billion ($23.45 million), reversing a loss in the same period last year. The company credited the strong performance to robust growth in its financial technology and on-demand services segments.


The group’s core Gross Transaction Value (GTV) surged 54 percent year-on-year to Rp 83.2 trillion, while total GTV rose 24 percent to Rp 144.6 trillion. Net revenue also climbed 37 percent to Rp4.2 trillion, reflecting GoTo’s integrated execution strategy and focus on profitability.


“This quarter’s performance demonstrates the success of our strategy in balancing growth and efficiency,” CEO Patrick Walujo said in a statement. “We continue to strengthen our premium user base and invest in innovation and technology to support long-term expansion.”


GoTo’s financial technology segment booked net revenue of Rp1.2 trillion, a 90 percent year-on-year increase, with adjusted EBITDA swinging to a Rp 47 billion profit, a Rp 295 billion improvement over the prior year. The gains were driven by a 108 percent rise in consumer loan portfolio to Rp 5.7 trillion and a 168 percent jump in loan service revenues.

“Despite potential external challenges like inflation and market competition, we remain optimistic about sustaining our growth momentum,” Walujo said.


As of the end of 2024, foreign investors controlled 73.9 percent of GoTo’s shares, while domestic investors held the remaining 26.1 percent.


GOTO shares rose 3.66 percent to close at Rp85 on Tuesday.

GoTo Turns Profitable in Q1 2025 as Fintech and On-Demand Units Surge

GoTo posts Rp393 billion adjusted EBITDA profit in Q1 2025, fueled by fintech and on-demand growth; shares rise 3.88% to Rp85.

jakartaglobe.id

 

[Indos]

Bukalapak reports 37% revenue growth in Q1 2025​

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23h ago
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Ecommerce
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News

Indonesian ecommerce platform PT Bukalapak.com Tbk (BUKA) reported a 37% revenue growth in Q1 2025, reaching 1.5 trillion rupiah (US$89.74 million), up from 1.1 trillion rupiah (US$65.81 million) in the previous quarter.


This increase was driven by strong performance in its gaming and retail segments and a new business segmentation, including Mitra Bukalapak, Gaming, Retail, and Investment.


The company’s contribution margin nearly doubled to 80 billion rupiah (US$4.79 million), a 95% increase from the prior quarter.

Net profit turned positive at 112 billion rupiah (US$6.7 million), recovering from a net loss of 955 billion rupiah (US$57.13 million) in Q4 2024.


Bukalapak ended Q1 with 18.8 trillion rupiah (US$1.12 billion) in cash and liquid investments, signaling strong financial stability for future growth.

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