President calls for broad support of foreign investment amid declining FDI inflows

  • Published on 07/11/2025 GMT+7

  • Reading time 3 minutes

  • Author: Renold Rinaldi

President Prabowo Subianto has urged all parties in Indonesia to support foreign investors operating in the country, emphasizing that such investments bring significant economic benefits, particularly to local regions.

Speaking at the inauguration of PT Lotte Chemical Indonesia’s large-scale petrochemical plant in Cilegon, Banten, on Thursday, November 6, 2025, Prabowo said that South Korea’s Lotte Group had shown deep trust in Indonesia as an investment destination, and it was therefore the nation’s duty to ensure that the company’s operations ran smoothly.

“We must support foreign investment. Let us ensure mutual benefits. It is an honor for us when partners from abroad, who have worked hard for decades to earn their capital, choose to invest here. That means they trust us,” Prabowo said in his speech.

The president stressed that all stakeholders must guarantee a sense of security and comfort for Lotte and other foreign investors. He warned against any actions that could disrupt operations or create uncertainty.

“They are providing benefits for us, so we must safeguard them. Let’s make them feel welcome and secure. No elements should disturb their operations mutual respect and goodwill are essential,” he said.

Prabowo underscored that investor confidence is crucial to accelerating Indonesia’s economic growth. He highlighted that the rule of law and consistent law enforcement are key to building trust among global investors.

“If we uphold truth, fairness, and legal certainty in compliance with the rule of law, it will foster trust. And with trust, as a nation that values openness and trade, we can move more quickly toward prosperity,” he remarked.

The call for greater support for foreign investors comes amid a decline in foreign direct investment (FDI) inflows into Indonesia over the past two quarters.

According to data from the Investment and Downstreaming Ministry/Investment Coordinating Board(BKPM), Indonesia recorded Rp212 trillion (US$13 billion) in FDI realization in the third quarter (Q3) of 2025, an 8.9 percent decrease compared to Rp 232.7 trillion in the same period last year.

A similar trend was seen in the second quarter, with FDI totaling Rp202.2 trillion, down 6.95 percent year-on-year from Rp 217.3 trillion in Q2 2024.

Investment Minister Rosan Perkasa Roeslani attributed the decline to global headwinds, including escalating geopolitical tensions and trade disputes that have persisted in recent months.

“Global challenges remain significant. During the July–September period, we observed rising trade war risks and ongoing geopolitical conflicts that have affected investor sentiment,” Rosan said during a press conference in Jakarta on October 17, 2025.

Despite the decline, the government remains optimistic that Indonesia’s investment climate will improve under policies promoting legal certainty, political stability, and support for investors, in line with President Prabowo’s call for national unity in welcoming foreign partners.

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