BKPM: Investment and Downstreaming as Key to Sustainable Economic Growth
JAKARTA – The Ministry of Investment and Downstreaming/BKPM has affirmed that investment and downstream processing are designed to form the primary foundation in sustaining the national economic growth.
Deputy Minister of Investment and Downstreaming, Todotua Pasaribu, stated that this strategy is key to maintaining the momentum of domestic economic growth. This aligns with Indonesia’s economic growth achievement of 5.61% year-on-year (yoy), based on data from the Central Statistics Agency (BPS).
According to Todotua, the direction of national investment policy is now focused on economic transformation through increasing industrial value added, strengthening downstream processing, and building an integrated investment ecosystem.
He explained that the investment sector has a significant contribution to national economic growth. In the first quarter of 2026, approximately 30% of Indonesia’s economic growth was supported by investment.
“With a target economic growth towards 8%, various efforts and strategic frameworks are certainly needed to drive the realisation of national investment,” stated Todotua Pasaribu at the Ministry of Investment and Downstreaming office in Jakarta on Wednesday (13/5/2026).
Todotua assessed that future investment strategies must be increasingly directed and integrated with the national downstream processing programme. This policy is not only oriented towards increasing investment value but also directed at creating added value for commodities and strengthening the domestic industrial structure.
In that context, downstream processing is said to be one of the main engines of national economic growth. In addition to contributing around 30% to investment realisation, the downstream sector has also shown significant growth in recent years.
The government continues to encourage the development of integrated economic zones to accelerate investment. These efforts are strengthened through the construction of connectivity and a more efficient national logistics system. Meanwhile, regarding downstream processing, its success is not only determined by the availability of commodities, but also by aspects of readiness in the supporting ecosystem such as logistics infrastructure, energy, and industrial supply chains.
“Without the presence of integrated infrastructure and logistics ecosystems, investment cannot be efficient, and the strategies for downstream processing and industrialisation will not be optimal,” Todotua concluded.