Indonesia domestic investment contracts in Q2 2026

Data from the Ministry of Investment and the Investment Coordinating Board (BKPM) shows that total investment inflows remained robust in the first half of 2026. However, domestic investment (PMDN) fell sharply in the second quarter, marking a contraction after earlier growth.

Analysts say the slowdown signals a need for more investment‑friendly policies to encourage local businesses to expand and to prevent the expansion gap from widening further.