ASIATODAY.ID, JAKARTA — Prabowo Subianto is accelerating efforts to strengthen Indonesia’s investment climate, taking a firm stance on cutting obstructive regulations and aligning the country with global standards. The directive comes as investment realization surges close to IDR500 trillion in the first quarter of 2026.
In a report to the President, Minister of Investment and Downstreaming Rosan Roeslani revealed that investment realization in Q1 2026 reached IDR498.79 trillion—equivalent to 100.36 percent of the IDR497 trillion target. The figure represents a 7.22 percent year-on-year increase and has generated employment for more than 706,000 people.
“Investor interest in Indonesia remains very strong despite ongoing global geopolitical and geoeconomic uncertainties,” Rosan told reporters at the Presidential Palace Complex in Jakarta on April 21, 2026.
However, President Prabowo emphasized that this momentum must be safeguarded through concrete reforms. He stressed that no regulation should stand in the way of investment flows.
“Regulations must not become obstacles. If they hinder, they must be removed,” Rosan said, relaying the President’s directive.
Global Benchmarking: ASEAN to OECD
Beyond deregulation, the President is pushing for comprehensive policy reforms based on international best practices. Indonesia is benchmarking its investment climate against ASEAN countries and standards set by the Organisation for Economic Co-operation and Development to ensure greater efficiency, transparency, and competitiveness.
This move forms part of a broader national strategy to strengthen long-term economic foundations while accelerating the transition toward higher value-added industries.
Balanced Investment, Downstream Sectors Lead
Investment composition shows a balanced mix between foreign and domestic capital. Foreign direct investment reached IDR249.94 trillion, while regional distribution remains relatively even, with 50.37 percent flowing outside Java and 49.63 percent within Java.
Downstream sectors—particularly base metals and smelter industries—continue to dominate. Other key contributors include services, mining, industrial estates, transportation, logistics, and telecommunications.
Ambitious Target: IDR13,000 Trillion
Looking ahead, Indonesia’s investment trajectory is set to climb significantly. Total investment from 2014 to 2024 stood at around IDR9,100 trillion, with a sharp increase targeted to exceed IDR13,000 trillion for the 2025–2029 period.
These figures underscore Indonesia’s resilience amid global uncertainty and reinforce its position as an increasingly competitive destination for international investment. (AT Network)
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