Local Investors Dominate 64% of Indonesia's Property Investment in H1 2026
According to Indonesia's Ministry of Investment/BKPM, domestic investors (PMDN) accounted for about 64% of the Rp85.8 trillion in property sector investment realized in January-June 2026, with foreign investment (PMA) making up the remaining 36%. Foreign capital grew about 39% year-on-year, suggesting continued appetite for large, high-quality assets.
Data released by Indonesia's Ministry of Investment/Investment Coordinating Board (BKPM) shows that property sector investmentācovering housing, industrial estates, and office spaceāreached Rp85.8 trillion in the first six months of 2026, ranking among the top five sectors nationally out of a total realized investment of Rp1,010.6 trillion.
Of this, domestic investment (PMDN) accounted for Rp55.3 trillion (about 64%), while foreign investment (PMA) made up Rp30.5 trillion (about 36%), continuing a pattern of domestic capital leading Indonesia's property market.
Compared to the same period in 2025, domestic investment grew roughly 4% (from Rp53.0 trillion to Rp55.3 trillion), while foreign investmentāwhich had fallen about 16% year-on-year in 2025ārebounded sharply, growing approximately 39% in H1 2026.
Mike Broomell, Managing Director of Colliers Indonesia, said the first half of 2026 shows that capital remains available for large-scale assets in Indonesia with strong fundamentals. He added that investment activity is expected to broaden in the second half of the year, though buyers will remain selective, prioritizing premium office space, healthcare assets, and deals offering stable income, trusted operators, and execution certainty.
By country of origin, Singapore led foreign investment into Indonesia across all sectors with US$8.8 billion, followed by Hong Kong (US$7.6 billion), China (US$3.9 billion), Japan (US$1.9 billion), and the United States (US$1.7 billion). Across all sectors combined, foreign investment (PMA) actually made up 50.2% of total realized investment, slightly surpassing domestic capital.
Things to Consider
Foreign nationals considering property investment or long-term rentals in Indonesia, including Bali, should note this data reflects a market still led by domestic capital, with foreign investors being increasingly selective toward trusted operators and proven developers. Always verify land title status (SHM/SHGB/HGB) and zoning through a licensed local notary (notaris) before signing any agreement, and cross-check investment decisions against up-to-date government statistics and property advisory analysis.
Source: Palpos