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Top Business Sectors in Indonesia: Where Investment Goes

The top business sectors in Indonesia by realised investment, from BKPM's own figures: metals processing, logistics, services, estates and energy.

Jurisdiction
Indonesia
Last reviewed
14 Sept 2026
References
  • Kementerian Investasi dan Hilirisasi/BKPM — investment realisation releases of 31 January 2025 (2024), 15 January 2026 (2025) and 17 July 2026 (first half of 2026). Realisation figures exclude upstream oil and gas and financial services
  • Bank Indonesia — releases No. 28/28/DKom (5 February 2026) and No. 28/150/DKom (5 August 2026), economic growth
  • PP No. 40 Tahun 2025 on National Energy Policy — in force 15 September 2025, revoking PP No. 79 Tahun 2014
  • Perpres No. 79 Tahun 2023, amending Perpres No. 55 Tahun 2019 on battery electric vehicles — Article 8(1), local-content minimums
  • Keppres No. 1 Tahun 2025 — the task force for accelerating downstreaming and national energy security

The top business sectors in Indonesia, measured by where investment actually went, are led by basic metals processing, transport and telecoms, and mining. In 2025, realised investment reached IDR 1,931.2 trillion, according to the investment ministry’s release of 15 January 2026.

IDR 1,931.2tn
realised investment in 2025
30.2%
of it downstreaming, up from 23.8% the year before
73.5%
of downstreaming investment from foreign investors

These figures come from BKPM, the Ministry of Investment and Downstreaming, and are published in its full-year release. They cover investment actually made, not pledges.

How the top business sectors in Indonesia ranked in 2025

Realised investment by sector, 2025 (IDR trillion)
  • Metals processing 262
  • Transport and telecoms 211
  • Mining 199.6
  • Other services 170.5
  • Industrial estates 140.4

BKPM, 15 January 2026. Excludes upstream oil and gas, and financial services.

In BKPM’s own terms, and as a share of all realised investment in 2025, the five are:

  • Basic metals, metal goods (other than machinery) and equipment: 13.6%
  • Transport, warehousing and telecommunications: 10.9%
  • Mining: 10.3%
  • Other services: 8.8%
  • Housing, industrial estates and offices: 7.3%

In the first half of 2026 the same five led again. Other services rose from fourth place to second (BKPM, 17 July 2026).

Metals processing, downstreaming and mining

Downstreaming means processing minerals and other commodities in Indonesia rather than exporting them raw. It made up 30.2% of all investment in 2025, IDR 584.1 trillion, of which minerals accounted for IDR 373.1 trillion (BKPM, 15 January 2026).

Mining, third on the chart, sits upstream of that processing. The government set up a task force to accelerate downstreaming in January 2025 (Keppres No. 1 of 2025).

Transport, warehousing and telecoms

Second in 2025, at IDR 211.0 trillion. The economy it serves grew 5.11% in 2025 and 5.29% year on year in the second quarter of 2026, according to Bank Indonesia.

Other services

BKPM’s category of other services was fourth in 2025, at IDR 170.5 trillion, and second in the first half of 2026. The release does not break the category down further.

Industrial estates, housing and offices

Fifth in 2025, at IDR 140.4 trillion. It sits alongside the first two: processing plants and warehouses are built on industrial estates.

Tourism and hospitality

Outside BKPM’s top five, tourism is worth a line: it is one of the sectors in which MAM regularly sets up companies for foreign investors.

Energy transition and electric vehicles

National energy policy, in PP No. 40 of 2025 (in force since 15 September 2025), sets a target of net zero emissions by 2060. The share of new and renewable energy is to reach 19–23% by 2030 and 70–72% by 2060.

For battery electric vehicles, the minimum share of local content rises in steps, for two- and three-wheelers and for cars alike (Perpres No. 79 of 2023, Article 8(1)).

  1. Until the end of 2026

    40% local content

    The minimum today.

  2. 2027 to 2029

    60% local content

    The next step, from 1 January 2027.

  3. From 2030

    80% local content

    And from 2030 onwards.

Policy is ahead of the money

Investment in the electric-vehicle battery ecosystem was IDR 8.4 trillion in 2024 (BKPM, 31 January 2025). That is a different year from the chart above, and a fraction of what went into metals processing. The rules point the way; realised investment has not yet followed at the same scale.

What this means for a foreign investor

A sector ranking does not say what you may own

Foreign ownership is set for each business activity, not for a sector as a whole, so two businesses in the same sector can face different limits. Check the activity before choosing a structure; the page on the PT PMA, a foreign-owned limited liability company, explains how.

The companies MAM sets up for foreign investors come from many industries: start-ups, import and export, factories and manufacturing, IT, trading and distribution, and consulting and professional services. A business that wants to test the market before incorporating can hire its first people through an employer of record. The taxes a new company meets in any of these industries are summarised in the tax system in Indonesia. Once set up, a PT PMA reports its investment to BKPM through the LKPM, and the LKPM report explains what that report contains.

Choosing where to invest in Indonesia?

MAM helps foreign investors turn a sector choice into a working company, from the ownership check and licences to hiring the first team. Tell us your sector and we will set out the route.

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Where this applies

Foreign Company (PT PMA)

A PT PMA is the foreign-investment company: up to 100% foreign ownership, subject to your KBLI.

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Employer of Record

Employer of record Indonesia services — hire and pay staff without setting up an entity first.

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