BKPM Records Investment Realisation Reaching USD 120.7 Billion in 2025
BKPM Records Investment Realisation Reaching USD 120.7 Billion in 2025
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The Ministry of Investment and Downstream Industries/BKPM recorded investment realisation in 2025 reaching USD 120.7 billion, or growing 12.7 percent year-on-year.
The Deputy for Investment Cooperation at the Ministry of Investment and Downstream Industries/BKPM, Tirta Nugraha Mursitama, said that the value exceeded the target, with a relatively balanced composition between domestic investment of 53 percent and foreign investment of 47 percent.
“This realisation has created 2.7 million direct jobs. One of the most important engines of this transition is downstreaming,” said Tirta, who attended online at the event entitled The New Calculus for Growth Markets: Scaling Innovation & Entrepreneurship in Southeast Asia at Nur Corner S28, South Jakarta, Thursday (26/2).
Tirta emphasised that economic growth relies on innovation and entrepreneurship, especially in the fields of investment and downstreaming.
He stated that this approach is reflected in the achievements of Indonesia’s nickel sector, which is considered concrete evidence of the implementation of a macro calculus based on innovative policies.
“In the nickel commodity, the export value has increased more than 10-fold, from around USD 3.3 billion in 2018 to more than USD 34 billion in 2024. That is the macro calculus at work, policy as capital innovation.”
According to him, the downstreaming strategy is not just about increasing processing in the country, but also about building an innovation platform by creating an industrial ecosystem that encourages the need for better technological solutions.
This strategy is also aligned with the energy transition agenda, as the next value chain is considered to require not only increased processing, but also cleaner processes and products.
“We are optimising strategic minerals such as nickel, cobalt, and oxides by converting them into higher value-added products in the overall ecosystem, including batteries and solar panels. This change is already visible in the figures,” said Tirta.
The impact is also said to be visible, with the downstream industry in 2025 growing by more than 42 percent and contributing more than 30 percent of total investment realisation. In addition to downstreaming, incentives are the second pillar of the strategy.
The government has used various incentives to attract capital to innovation-based sectors. Furthermore, regulatory reforms through the standardisation of licensing processes based on the Online Single Submission (OSS) system have also been carried out as a national gateway that integrates services across ministries, agencies, and levels of government.
“To realise this macro calculus in reality, we need institutions that are able to translate strategies into feasible investments. This is the reason for the formation of Danantara Indonesia,” said Tirta.
Danantara is claimed to be the fifth largest investment management agency in the world, managing assets of around USD 1 trillion in thousands of companies across national economic sectors. Danantara is explained to have three main pillars, namely discipline and sustainability, credible partnerships, and the priority of developing strategic technologies.
“Danantara is managed with a clear mandate and in 2025 manages around USD 8 billion in the form of dividends,” said Tirta.
A Glimpse of the MIT Kuo Sharper Center Indonesia Series 2026
The MIT Kuo Sharper Center presents a discussion that discusses new approaches to aligning policies, capital, and capabilities to strengthen the innovation ecosystem. This discussion is entitled The New Calculus for Growth Markets: Scaling Innovation Entrepreneurship in Southeast Asia.
Through this discussion, speakers including Executive Director of the MIT Kuo Sharper Center Dina H. Sherif, Sandiaga Uno, Deputy Chairman of the National Economic Council Mari Elka Pangestu, and President Director of PT Iforte Solusi Infotek Peter Djatmiko discussed Indonesia’s position as one of the engines of growth in driving digital transformation and industrial development in Southeast Asia.