Airlangga Says Investment in Indonesia Increasingly Evenly Distributed, Here's the Evidence
Coordinating Minister for Economic Affairs Airlangga Hartarto has said that the spread of investment in Indonesia became more even in the first half of 2026. According to him, the share of investment in Java and outside Java is now nearly balanced.
“In terms of investment, it is also almost 50 percent in Java and 50 percent outside Java. So a better balance has been achieved,” Airlangga said when met at his office in Jakarta, as quoted from Antara, Thursday, 6 August 2026.
Based on data from the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM), realised investment in the first half of 2026 reached Rp1,010.6 trillion, or grew 7.2 percent year-on-year (YoY).
Meanwhile, realised investment in the second quarter of 2026 was recorded at Rp511.8 trillion, an increase of 7.1 percent compared with the same period last year.
BKPM data shows that investment outside Java in the second quarter of 2026 reached Rp256.5 trillion, or 50.1 percent of total national realised investment.
Investment in Java was recorded at Rp255.3 trillion, or 49.9 percent. Airlangga assessed that this composition reflects an increasingly even spread of investment across various regions of Indonesia.
BKPM recorded the five provinces with the largest realised investment in the second quarter of 2026, namely DKI Jakarta at Rp94.9 trillion; West Java at Rp61.3 trillion; North Maluku at Rp40.2 trillion; East Java at Rp40.1 trillion; and Central Sulawesi at Rp36.6 trillion.
Downstreaming remains a priority
Airlangga said the government continues to make downstreaming one of its main priorities to drive economic growth and strengthen national export performance.
According to him, President Prabowo Subianto has also directed that the downstreaming programme be accelerated, including through the establishment of Danantara Sumberdaya Indonesia (DSI) as the single export agent.
“The President has also directed that the downstreaming sector continue to be pushed. In addition, DSI as the single export agent has been established and the data shows positive developments in our export prices,” Airlangga said.
Besides strengthening downstreaming, the government continues to expand market access through various international trade agreements.
These include the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), the Indonesia-Tunisia Preferential Trade Agreement (IT-PTA), the Indonesia-Peru Comprehensive Economic Partnership Agreement (IP-CEPA), and the Free Trade Agreement (FTA) between Indonesia and the Eurasian Economic Union (EAEU).
According to Airlangga, these agreements expand Indonesia’s export access to a number of strategic markets. “The government is opening up a lot of access through international agreements. Export access is now increasingly open to the European Union, the United States, as well as partner countries such as ASEAN, China, Japan, South Korea, Australia, and others,” Airlangga said.
He added that the government will continue to maintain export market access while strengthening downstreaming and the national value chain to improve the competitiveness of Indonesian products.