Airlangga Hartarto: Q1 2026 Investment Realisation Shows Positive Growth, Indonesia Becomes...
The government continues to strengthen structural reforms to create a more conducive, adaptive, and responsive investment climate amid global economic developments. These efforts are pursued through the refinement of policies and business licensing systems that accommodate new business models, technological advancements, and the needs of entrepreneurs across various sectors.
“In the midst of ongoing global uncertainties, Indonesia’s economic fundamentals remain solidly maintained. The economic growth momentum in the first quarter of 2026 is supported by household consumption, THR disbursements, and accelerated state expenditure through stimulus realisation amounting to Rp809 trillion,” explained Coordinating Minister for the Economy Airlangga Hartarto during a press conference on Q1 2026 Investment Realisation and the Implementation of KBLI 2025 at the Ministry of Investment and Downstreaming office in Jakarta on Thursday (23/04).
It was conveyed that investment performance showed positive achievements. Investment realisation in Q1 2026 reached Rp498.79 trillion, exceeding the set targets with 7.22% year-on-year growth. Labour absorption also increased significantly, by 706,569 people (up 18.93% yoy). This reflects the tangible contribution of investment to job creation and economic equity, including increased investment outside Java Island.
Additionally, Bank Indonesia maintained the BI Rate at 4.75% to bolster exchange rate stability amid external volatility. The March 2026 Manufacturing PMI stood at 50.1, still in the expansion phase, with the Q1 2026 average consistently above 50 and remaining competitive in the ASEAN region.
From the external side, the trade balance surplus has been recorded for 70 consecutive months, with adequate foreign exchange reserves of USD148.2 billion. Meanwhile, the state budget deficit as of March 2026 remained low at 0.93% of GDP, reflecting fiscal discipline amid measured expansion.
In line with these achievements, the government affirms that Indonesia remains a prospective investment destination. To that end, through the Task Force for Accelerating Government Programmes to Support Economic Growth Enhancement (P3M-PPE) established via Presidential Decree No. 4 of 2026, the government continues to ensure that every policy delivers real impacts on ease of doing business, including efforts to remove investment bottlenecks.
Furthermore, the government stated that the implementation of the 2025 Indonesian Standard Industrial Classification (KBLI) adjustment is an important part of strengthening the risk-based business licensing system. The KBLI 2025 adjustment is expected to provide legal certainty, improve licensing process efficiency, and boost national investment competitiveness.
The KBLI 2025 adjustment, stipulated through the Regulation of the Central Bureau of Statistics, is a significant update from the previous KBLI to accommodate new economic developments. The update covers the digital economy and artificial intelligence sectors, climate change mitigation, new business models, and strengthening the financial services sector, including bullion banks.
“To provide certainty to business actors, today we announce a Joint Circular Letter (SEB) between the Minister of Investment and Downstreaming/Head of BKPM, the Minister of Law, and the Head of BPS. This SEB serves as an operational technical guide in implementing KBLI code adjustments without harming business interests,” said Minister Airlangga.
There are two main mechanisms in this adjustment: automatic adjustment by the system through integration between the Directorate General of AHU System and OSS, and adjustment carried out by business actors if there are changes in the articles of association.