Indonesia’s Foreign Direct Investment (FDI) Growth Accelerated Slightly to 27.5% YoY in 3Q26

Indonesia’s Foreign Direct Investment (FDI) Growth Accelerated Slightly to 27.5% YoY in 3Q26
Indonesia’s FDI growth edged up to 27.5% YoY in 3Q26 from 27.4% in 2Q26. Historically, FDI growth averaged 14.02% between 2011 and 2026, reaching a peak of 63.6% in 3Q22 and a record low of -20.2% in 3Q18. (Trading Economics)

Indonesia Recorded IDR 1,539.2 tn in Investment Realization in 9M26, Reaching 75.4% of Target 
Indonesia recorded investment realization of IDR 1,539.2 tn in 9M26, equivalent to 75.4% of the annual target, creating 2.19 mn jobs. Domestic direct investment (PMDN) contributed IDR 761.4 tn (49.5%), while foreign direct investment (PMA) reached IDR 777.8 tn (50.5%). Investment outside Java accounted for 50.6% of the total, at IDR 779.4 tn, compared with 49.4% in Java. By sector, transportation, warehousing, and telecommunications recorded the largest combined investment at IDR 269.2 tn (17.5%), while basic metals and metal products led foreign investment at IDR 216.6 tn. Downstreaming investment reached approximately IDR 480 tn, or 31.2% of total investment, up 11.3%, primarily driven by minerals at IDR 335.1 tn. Singapore was the largest source of investment at USD 14.0 bn, followed by Hong Kong at USD 12.8 bn and China at USD 5.0 bn. (Bloomberg Technoz) 

Govt. Projected 4Q26 Spending to Exceed IDR 1,300 tn 
Finance Minister Suahasil Nazara projected govt. spending in 4Q26 to exceed IDR 1,300 tn, up from approximately IDR 1,200 tn in the same period last year. The spending will support economic activity, public services, and social protection programs, including food assistance. Suahasil emphasized that year-end budget efficiency measures are intended to ensure effective budget execution rather than halt spending, with higher govt. expenditure expected to support economic growth. (Bloomberg Technoz)

IDX Stated It Could Not Cancel Jhonlin Agro Raya (JARR) and Pradiksi Gunatama (PGUN) Share Pledges Linked to Bayan Resources (BYAN) Acquisition 
IDX stated that it has no authority to cancel the share pledges of JARR and PGUN to BMRI, which were linked to the acquisition of BYAN by parties associated with businessman Andi Syamsuddin Arsyad, also known as Haji Isam. IDX President Director Jeffrey Hendrik said the permissibility of share-backed credit facilities falls under banking regulations, while the exchange’s role is to ensure listed co.’s comply with capital market disclosure requirements. IDX has requested information from the relevant listed co.’s and may submit further questions in accordance with its standard procedures. (Bloomberg Technoz) 

IDX Planned to Exclude All High Shareholding Concentration (HSC) Stocks from JCI Calculation 
IDX announced two additional capital market reform initiatives following MSCI’s proposed market reclassification review. First, IDX will disclose whether shareholders holding more than 1% of a co.’s shares are affiliated or unaffiliated parties. Second, all stocks classified under HSC will be excluded from the JCI calculation to improve index integrity and provide a more representative picture of market movements. IDX clarified that the measure does not constitute delisting, and affected stocks will be reinstated in the JCI once removed from the HSC list, with no additional sanctions imposed on the issuers. HSC stocks currently account for approximately 18% of the JCI’s weighting. (CNBC Indonesia) 

IDX Maintained Indonesia’s Eligibility for Emerging Market Status Amid MSCI Review 
IDX maintained that Indonesia continued to meet all criteria for Emerging Market status, with IDX President Director Jeffrey Hendrik noting that global investors had expressed similar views. He added that Indonesia met several criteria at levels comparable to or better than other emerging markets, according to MSCI’s accompanying assessment. IDX and the Financial Services Authority (OJK) have continued communicating capital market reforms to MSCI, FTSE Russell, and global investors to improve transparency, credibility, and governance. (Bloomberg Technoz) 

IDX Urged Domestic Institutional Investors to Increase Market Participation 
IDX urged domestic institutional investors to participate more actively in the local stock market amid pressure following MSCI’s proposal to reclassify Indonesia as a Standalone Market. IDX President Director Jeffrey Hendrik said Indonesia’s capital market fundamentals remained strong and offered attractive prospects, supported by listed co.’s fundamentals and a large retail investor base. IDX has held discussions with various parties to encourage greater domestic institutional participation while continuing efforts to maintain foreign investor confidence.(Bloomberg Technoz)