President Prabowo Subianto has once again affirmed his\nadministration\u2019s commitment to strengthening legal certainty in\nIndonesia, a step believed to further attract global investors to deploy\ntheir capital. The affirmation was delivered at a global economic forum\nheld in Jakarta in early February 2026, attended by representatives of\nmultinational corporations from around the world.<\/p>\n
The commitment to legal certainty is one of the principal pillars of\nthe government\u2019s efforts to create a conducive and competitive\ninvestment climate. This aligns with data from the Investment\nCoordinating Board (BKPM) showing a significant increase in foreign\ndirect investment (FDI) realisation throughout 2025, reaching a record\nUS$55 billion. The figure represents a 12 per cent rise compared with\nthe previous year, with the manufacturing and renewable energy sectors\nserving as the primary drawcards.<\/p>\n
Global Investors Welcome Stability and Reform<\/strong><\/p>\n Global investor interest in Indonesia has become increasingly\napparent. A number of investors from Europe and the United States have\nexpressed serious interest in expanding the scale of their operations in\nthe country. John Smith, CEO of Global Ventures, highlighted political\nstability and the government\u2019s commitment to regulatory reform as\npositive signals driving investment decisions.<\/p>\n The government under Prabowo Subianto\u2019s leadership is also finalising\na new investment incentive package. The package encompasses various\nfacilitations, ranging from streamlined licensing to more attractive\nfiscal facilities. It is expected to be completed by the second quarter\nof 2026. The initiative is specifically designed to attract investment\nin strategic sectors such as industrial downstreaming and the green\neconomy, which are national development priorities.<\/p>\n Ambitious Targets and Investment Security\nGuarantees<\/strong><\/p>\n Coordinating Minister for Economic Affairs Airlangga Hartarto set an\nambitious investment target for this year in January 2026, namely\nRp1,800 trillion. Foreign investment is expected to make a significant\ncontribution towards achieving this target.<\/p>\n The issue of legal certainty, particularly regarding contract\nguarantees and dispute resolution mechanisms, has indeed been a primary\nconcern for investors. Prabowo Subianto has repeatedly emphasised on\nvarious occasions the importance of building a legal system that is\ntransparent and non-discriminatory for all business actors.<\/p>\n Dr Indah Permata, an economist from the University of Indonesia,\naffirmed that the new government\u2019s promise of legal certainty is\ncrucial. According to her, investors need assurance that their\ninvestments will be secure and will not be disrupted by sudden policy\nchanges. Furthermore, Indonesia\u2019s vast digital market potential is also\nattracting the interest of global technology giants, which are\nreportedly exploring the construction of data centres and research\nfacilities in the country.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/prabowo-government-strengthens-legal-certainty-as-foreign-investment-flows-predicted-to-rise-1771721809",
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"sponsor": "Okusi Associates",
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