The Ministry of Investment and Downstreaming\/Investment Coordinating\nBoard (BKPM) has officially requested an additional budget of Rp578.93\nbillion, or more than half a trillion rupiah, for the 2027 fiscal year.\nThis fresh injection of funds is deemed crucial to boost the national\ninvestment realisation target, which is set to reach Rp2,322\ntrillion.<\/p>\n
Minister of Investment and Downstreaming\/Head of BKPM, Rosan\nRoeslani, explained that the 2027 investment target represents a\nsignificant increase of 13.8 percent compared to the 2026 target. To\nsupport this major leap, meeting the ministry\u2019s budget allocation is\nnon-negotiable.<\/p>\n
\u201cTo support the achievement of this target, we proposed a budget of\nRp2.19 trillion. However, the indicative ceiling we have currently\nreceived is Rp625.14 billion,\u201d Rosan said during a working meeting with\nCommission XII of the Indonesian House of Representatives (DPR RI) on\nMonday, 15 June 2026.<\/p>\n
Rosan openly expressed his concern because the currently allocated\nindicative ceiling has plummeted by 37.6 percent compared to the 2026\nbudget ceiling. Ironically, the figure of Rp625.14 billion only covers\nabout 52 percent of the ministry\u2019s minimum operational needs, which\nideally should reach Rp1.2 trillion.<\/p>\n
\u201cWe hope for the support of the leadership and members of Commission\nXII so that the additional budget of Rp578.93 billion, in line with our\nminimum needs, can be fulfilled,\u201d he stated.<\/p>\n
During the session, Rosan also presented investment achievements for\nthe first quarter of 2026. Amid global geopolitical and geo-economic\ndynamics, investment realisation was recorded at Rp498.8 trillion,\ngrowing 7.2 percent compared to the same period the previous year. This\nrealisation is equivalent to 24.4 percent of the 2026 investment target\nand successfully absorbed around 750,000 direct jobs.<\/p>\n
In terms of investment sources, Domestic Direct Investment (PMDN)\ncontributed Rp248.8 trillion, or 49.9 percent of the total investment.\nMeanwhile, Foreign Direct Investment (PMA) reached Rp250 trillion, or\n50.1 percent.<\/p>\n
Rosan explained that investment outside Java Island is beginning to\nshow an increase, with a contribution of 50.4 percent or Rp251.3\ntrillion, slightly higher than investment in Java, which reached 49.6\npercent.<\/p>\n
The natural resource downstreaming sector contributed around 30\npercent of the total investment realisation in the first quarter of\n2026, amounting to Rp147.5 trillion. The largest contribution still came\nfrom the mineral processing industry, which reached Rp98.3 trillion.<\/p>\n
Going forward, the government will also continue to encourage\ndownstreaming in other strategic sectors such as semiconductors,\nbioethanol, coconut derivative products, and seaweed.<\/p>\n
To support increased investment, the Ministry of Investment and\nDownstreaming plans to develop an Online Single Submission (OSS) system\nbased on artificial intelligence (AI), big data, and blockchain. In\naddition, the integration of Detailed Spatial Plans (RDTR) into the OSS\nsystem will also be expanded, with an additional target of 400\ndistricts\/cities by 2027.<\/p>\n
During the meeting, Commission XII of the DPR RI stated that it\nunderstood the government\u2019s explanation regarding the indicative ceiling\nfor the Ministry of Investment and Downstreaming for the 2027 fiscal\nyear of Rp625.14 billion. Further in-depth discussions will be conducted\nwith the ministry\u2019s echelon I officials at the next meeting.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/investment-ministry-requests-over-half-a-trillion-rupiah-budget-boost-1781617818", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }