Jakarta (ANTARA) - Indonesia’s Finance Minister Purbaya Yudhi Sadewa voiced optimism that a stronger fourth-quarter rebound, driven by government stimulus, will boost investment growth despite a slowdown earlier in 2025.

He said the slower investment realization in the third quarter of 2025 reflected the impact of the country’s weakened economic performance in the first half of the year.

“When the economy slows, investment slows too. From the first months until around early September, the trend started to turn around gradually,” Purbaya told reporters at his office in Jakarta on Friday.

Data from the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) showed that investment realization reached Rp491.4 trillion ($30 billion) in the third quarter, up 13.9% year-on-year.

The pace, however, was slower than the 15.24% growth recorded in the same period last year.

Purbaya cautioned that the slowdown through September should not be used as the sole basis for projecting full-year results, saying investment was likely to accelerate as economic activity picks up in the final quarter.

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“When the economy becomes more active again, investment should grow faster. Past performance cannot be used to predict future performance,” he said.

Cumulatively, Indonesia recorded Rp1,434.3 trillion ($88 billion) in investment from January to September 2025, or 75.3% of the annual target.

Of that total, domestic investment (PMDN) contributed Rp789.7 trillion (55.1%), while foreign direct investment (FDI) accounted for Rp644.6 trillion (44.9%), creating around 1.95 million jobs.

Investment and Downstreaming Minister Rosan Roeslani said the overall trend indicates a steady economic recovery.

He noted that key contributors to investment inflows include the basic metals, metal products, and telecommunications industries, followed by mining, transportation, and warehousing sectors.

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Translator: Bayu Saputra, Katriana
Editor: Rahmad Nasution
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