BKPM Reveals Slow Investment Realisation in Indonesia

The Ministry of Investment/BKPM has highlighted that one of the main obstacles to investment in Indonesia is the duration required to realise projects. Compared to Vietnam, Indonesia is considered slower in executing investments, which impacts economic growth.

According to the Vice Minister of Investment and Downstreaming/BKPM, Todotua Pasaribu, the speed of investment realisation is a key differentiating factor between Indonesia and Vietnam in attracting capital in Southeast Asia.

“If we look at countries, especially when we talk about investment in Asia or Southeast Asia, one of the parameters we always use for comparison is Vietnam,” said Todotua Pasaribu to the media on Thursday (26/2/2026).

Vietnam’s economic growth, which has reached around 7% and is approaching 8%, is said to be due to a shorter investment cycle compared to Indonesia.

“Because from last year until now, Vietnam has been able to achieve a growth rate of around 7%, 7.4%. Some may say that in 2025, they will reach 8%,” he added.