APBN Only Covers 5% of 2027 Investment Target, Capital Market Urged to Step Up
The government has stated that Indonesia’s overall investment target for 2027 reaches Rp8,705 trillion. The state budget (APBN) can only support around 5% of the total investment requirement, while the remaining 91% must come from the private sector.
This was conveyed by Deputy Finance Minister (Wamenkeu) Juda Agung at the 49th Anniversary of the Indonesian Capital Market Revival held at the Indonesia Stock Exchange (BEI), Jakarta, Monday (10/8/2026).
Of the total investment requirement for next year, Juda said the APBN can only reach around Rp459 trillion, while state-owned enterprises (BUMN) including Danantara can contribute Rp330 trillion. Thus, their respective contributions to the investment requirement are estimated at only 5.2% and 3.8%.
“The remainder must largely come from private financing sources, namely Rp7,973 trillion or around 91% from private financing. Whether that is banks, other financing, and including the capital market here,” he explained at the BEI Building, Jakarta, Monday (10/8/2026).
For this reason, Juda assessed that the capital market also plays a strategic role as a source of private financing. Its role is to serve as a bridge connecting corporate financing and public funds.
To deepen Indonesia’s capital market, the country has now launched a gold ETF investment product. The launch of this gold ETF is considered in line with the high demand for such products.
Juda noted that interest in gold-based ETFs has increased, as seen from its value which has reached US$559 billion with gold holdings reaching 4,025 tonnes.
On the other hand, the gold ETF product is also expected to strengthen the national gold ecosystem by connecting it with the capital market ecosystem.
The former Deputy Governor of Bank Indonesia (BI) said the government will continue to synergise with the Financial Services Authority (OJK), the Indonesia Stock Exchange (BEI) and capital market players to build a financial market that is increasingly deep, inclusive, innovative, prudent and credible.
One of the synergies is to examine opportunities for providing special treatment for investment transactions through gold ETFs.
On the same occasion, Coordinating Minister for Economic Affairs Airlangga Hartarto said he would coordinate with the Ministry of Finance, one of which is led by Juda, to equalise the treatment of Value Added Tax (VAT) and Income Tax (PPh) Article 22 on investments in this new product.
The hope is that equalising the tax treatment on this portfolio investment can increase investment in the product.
“Earlier I spoke with the Deputy Finance Minister [Juda Agung] and the Director General [of Taxes Bimo Wijayanto] regarding the treatment of VAT and PPh Article 22 on EGR transactions. When the Director General speaks, I take notes directly, because the hope is that this can increase transactions and be equal to other transactions, especially those on the exchange,” said Airlangga.