JAKARTA – Investment realisation in the first quarter of 2025 is expected to grow, though at a slower pace compared to the fourth quarter of 2024. This is based on the Weighted Net Balance (SBT) recorded from the Bank Indonesia Business Activity Survey (SKDU-BI), published on Friday (17/1).

Investment in the first quarter of 2025 is projected to grow with an SBT of 8.83%, lower than the fourth quarter of 2024, which had an SBT of 9.59%.

Investment growth is expected in sectors such as Agriculture, Forestry, and Fisheries for the purchase and repair of production facilities and supporting equipment; Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles; and Transportation-Warehousing for the purchase and renewal of machinery, including building and facility renovations.

In the fourth quarter of 2024, investment activity was noted in several sectors, including Manufacturing; Public Administration, Defence and Social Security; Agriculture, Forestry and Fisheries; Real Estate; Transportation and Warehousing; and Accommodation and Food Services.

Meanwhile, 24.79% of SKDU-BI respondents reported investment plans for the first half of 2025, slightly lower than the second half of 2024, which was approximately 25.28%.

Respondents in the second half of 2024 cited several factors as obstacles to investment, including licensing, taxation, interest rates, legal regulations, infrastructure, labour, security, and access to bank credit. (LK/ZH)