Economist: Policy Certainty Crucial to Boost Investment in Indonesia - BCA Securities

An economist from the GREAT Institute, Adhamaski Pangeran, suggests that Indonesia needs to undertake structural improvements, particularly regarding policy certainty, to encourage more massive investment.

In a written statement in Jakarta on Monday, Adhamaski highlighted that investment realisation in the first semester of 2026 reached Rp1,010.6 trillion, representing 49.5 per cent of the 2026 investment target.

However, he noted that the increase in domestic investment value must be viewed alongside Indonesia’s position in the competitive investment landscape within ASEAN.

Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI) recorded a nearly threefold increase, rising from Rp693 trillion in 2017 to Rp1,931 trillion in 2025.

Nevertheless, Indonesia’s share of investment flowing into ASEAN actually dropped from 13.2 per cent to 8.8 per cent during the same period. Meanwhile, ASEAN’s share of global investment increased from 8.8 per cent to 15 per cent.

Adhamaski argued that this condition underscores the urgency for predictable policies and industrial regulations. He noted that investment competition is no longer solely about cost.