Foreign Direct Investment (FDI) in Indonesia surged 19% year-on-year to USD 60 billion by the end of 2024. This reinforces Indonesia's position as one of the key investment destinations in Southeast Asia, offering advantages that continue to attract international investors and occupiers. With a population exceeding 280 million, the country's economy is dominated by the industrial sector (including manufacturing and construction). It's vibrant digital economy, valued at USD 90 billion, further enhances its appeal.
Over the past five years, Indonesia has consistently received extensive investment from China. Chinese FDI increased from USD 0.6 billion in 2015 to USD 8.2 billion in 2022 and remained relatively stable at USD 8.1 billion in 2024, representing growth of 1,306% over the decade. Since 2020, Chinese investment in Indonesia has expanded and diversified, with a notable concentration in the Electric Vehicle (EV) ecosystem. Major corporations such as BYD, CATL, Foxconn, Gotion, and Wuling have committed to make investments in Indonesia. Trade figures further illustrate the relationship between the two countries. In March 2025, China remained Indonesia's primary export destination, accounting for 23.84% of total exports, with the United States (12.06%) and India (6.47%) following behind.
Figure 1: China’s Foreign Direct Investment (FDI) volume to Indonesia from 2015 to 2024