Indonesia’s Foreign Direct Investment Falls 6.95% in Q2 2025 as Rupiah Drops 0.34%, Stimulus and Rate Cuts Planned

Indonesia experienced a 6.95% year-on-year decline in foreign direct investment (FDI) in the second quarter of 2025, marking the largest drop since 2020. This decrease contributed to a depreciation of the Indonesian rupiah by as much as 0.34%, reaching 16,390 per U.S. dollar. In response to these economic challenges, Indonesia is preparing stimulus measures and interest rate cuts aimed at sustaining a 5% economic growth target. During the first half of 2025, foreign investment in Indonesia totaled approximately Rp 432.6 trillion. Meanwhile, in the Philippines, investments in agriculture, forestry, and fisheries have declined by an average of 6% annually from 2017 to 2022, according to the Philippine Development Plan.