In 2024, metal and metal goods industry (excluding machinery and equipment) emerged as one of the top Indonesia’s FDI Sectors, attracting USD 13.56 billion through around 2,695 projects. This accounts for over 20% of total FDI, outpacing all other industries by a significant margin.
Indonesia’s FDI Sectors: Diversification
This investment surge is driven by Indonesia’s abundant reserves of nickel and aluminum, two of the most critical materials for the global electric vehicle (EV) supply chain and renewable energy infrastructure. As global demand for sustainable transportation and electronics increases, Indonesia has positioned itself as a crucial player by advancing downstream processing capabilities.
While metals lead the pack, other sectors are quietly becoming significant FDI magnets in Indonesia. In 2024, the mining industry attracted USD 5.19 billion across 2,353 active projects, while the paper and printing industry received USD 4.78 billion via 1,324 projects.
Read Also: Indonesia’s Textile Industry: A Rollercoaster Ride
The second sector is booming due to Indonesia’s rich supply of wood and pulp, coupled with surging demand from the packaging, e-commerce, and food industries. With a strong upstream supply chain and integrated processing facilities, this industry offers robust potential for export growth and product innovation.
Read Also: The Shocking Impact of Food Waste in Indonesia: Billions Lost Each Year
Foreign investors are capitalizing on Indonesia’s commitment to value-added production. Rather than exporting raw ore, the country is focusing on developing smelters and processing plants that retain more economic value locally. This aligns with the government’s strategic push to become a global EV battery hub, attracting investment from China, South Korea, and Europe.
In addition to EVs, the metals sector serves high-growth industries such as construction, electronics, and aerospace, further enhancing its attractiveness. Policy support, including investment incentives in special economic zones (SEZs), adds to its appeal.
As the world transitions to cleaner technologies, Indonesia’s FDI Sectors, such as the metals industry, are poised to remain a magnet for long-term, high-impact FDI. They will help boost exports, create jobs, and fuel industrial transformation.
