Indonesian Political, Business & Finance News

BKPM Opens Investment Desk in Central Java: What It Does

| Source: CNBC Translated from Indonesian | Investment
BKPM Opens Investment Desk in Central Java: What It Does
Image: CNBC

Semarang, CNBC Indonesia — The government, through the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM), and the Central Java Provincial Government have officially opened an investment desk in Central Java. The move makes the province the starting point for a programme to speed up investment facilitation across Java.

“For Java in particular, we want to start in Central Java,” Todotua Pasaribu said at the inauguration of the investment desk in Semarang on Wednesday (11 November 2026).

The desk’s main purpose is to shorten investment cycles in Indonesia. The process currently takes an average of four to five years, with most delays caused by licensing issues and land availability.

“The investment cycle in our country is still quite long. On average, an investment cycle takes four to five years, right? In the early days, we found around Rp2,500 trillion in unrealised investment, because of longstanding problems. We have two classic problems: licensing and land,” he said.

Todotua said this was one reason the government needed to improve investment facilitation so that investment could be realised more quickly.

In addition to assisting with permits for new investments, the desk will proactively help resolve bottlenecks affecting investment projects.

Todotua said 126 investment projects across Indonesia were currently stalled for various reasons. Through the desk, the government aims to address these issues, particularly those concerning certainty and the acceleration of licensing.

“We have 126 stalled projects nationwide that have not moved forward. We want to resolve all these planned investments. At the very least, we can provide certainty on permits and expedite them,” Todotua said.

Another function will be to facilitate investment on idle land owned by local governments. The central government is therefore encouraging regencies and municipalities to identify land assets that could be offered to investors. One of the proposed criteria is a minimum area of 50 hectares.

“That is why, whenever we have the opportunity, we encourage our colleagues in regencies and municipalities to identify any land assets they have—at least 50 hectares—and make them available. Permits are our responsibility. There should be no more long delays,” he said.

The initiative is part of the government’s effort to accelerate regional investment and support national economic growth. The government is targeting economic growth of 8% under President Prabowo Subianto and Vice-President Gibran Rakabuming Raka.

By opening the investment desk, the government hopes to resolve investment obstacles more quickly, improve Indonesia’s competitiveness and catch up with neighbouring countries, including Vietnam.

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