Indonesia’s FDI Drop: Don’t Panic (But Also Maybe Panic)

After a record‑breaking 2024 with $55.33 billion flowing in, up 21% year on year, and a healthy first quarter in 2025, Indonesia's FDI numbers seemed to promise momentum. Then came Q2, and with it a cold splash of reality: FDI fell 6.95% from the same period last year, the sharpest quarterly drop since 2020.

Almost instantly, the familiar “don’t panic” c…