Domestic Investment Supports South Sumatra Amid Global Challenges
Domestic investment (PMDN) in South Sumatra Province continues to show a positive trend despite global conditions impacting the slowdown of foreign investment. According to data from the Department of Investment and One-Stop Integrated Services (DPMPTSP), out of the total investment in South Sumatra for the first quarter of 2026, which reached Rp12.96 trillion, domestic investment realisation stood at Rp10.43 trillion, or approximately 80.48%.
Eko Agusrianto, Head of the Data and Information Working Group at DPMPTSP South Sumatra, stated that domestic investment achievements in the first quarter of this year also showed an increase of 5.99% compared to the same period in 2025. “On a year-on-year (yoy) basis, PMDN experienced an increase of 5.99%, from Rp9.84 trillion in Q1 2025 to Rp10.43 trillion in Q1 2026,” he said during an interview on Wednesday (3/6/2026).
Eko explained that the rise in domestic investment was driven by increased compliance among business actors in submitting investment activity reports through the Online Single Submission (OSS) system. The South Sumatra Provincial Government continues to provide facilitation to business actors, both at the provincial and regency/city levels, particularly regarding investment reporting obstacles.
“We will continue to provide facilitation regarding any reporting constraints. It is through these reports that we can see the actual value of the investment,” he explained.
Additionally, there has been a significant number of new Business Identification Number (NIB) issuances, particularly from medium-sized enterprises. This increase was driven by various proactive field-based licensing service programmes. “We also go into the field to identify any obstacles, such as network issues or lack of knowledge regarding licensing,” he added.
Regarding the sub-sectors acting as the primary drivers of investment in South Sumatra, domestic investment was led by mining at Rp2.7 trillion, food crops, plantations, and livestock at Rp2.07 trillion, food industry at Rp1.62 trillion, chemical and pharmaceutical industry at Rp1.47 trillion, and construction at Rp894 billion.
For foreign direct investment (PMA), the highest contributing sub-sectors included the paper and printing industry at Rp1.20 trillion, electricity, gas, and water at Rp407 billion, forestry at Rp181 billion, food industry at Rp145 billion, and transport, warehousing, and telecommunications at Rp131 billion.
Overall, Eko added, investment realisation in South Sumatra in the first three months of this year reached 17.58% of the national target and 28.37% of the Regional Medium-Term Development Plan (RPJMD) target. “The investment target for South Sumatra according to the RPJMD this year is Rp44.63 trillion, while the target from BKPM (Ministry of Investment and Downstreaming) is Rp73.70 trillion,” he concluded.