Examining Indonesia's Opportunities as an Investment Destination Amidst Intensifying Global Geopolitics
President Prabowo Subianto believes that Indonesia has promising opportunities to become an attractive investment destination amid heated geopolitical conditions. How significant are these opportunities?
In a government working meeting held at the Presidential Palace in Jakarta on 8 April 2026, Prabowo stated that the crises stemming from conflicts in the Middle East and the war between Iran and the US-Israel alliance actually present opportunities for Indonesia.
“For me, there is no darkness for Indonesia. Indonesia is bright at a time when many countries are struggling,” he said during the government meeting.
According to him, there are opportunities for investment flows during heated geopolitical conditions. This is because Indonesia is a country with strong stability.
In fact, according to Prabowo, if a third world war were to occur, Indonesia would be among the safest countries.
“Indonesia is one of the most sought-after. So, brothers and sisters, the point is that we have tremendous potential,” said Prabowo.
Investment Minister and Head of BKPM Rosan Roeslani also stated that amid the current heated global geopolitical conditions, investment commitments are flowing into Indonesia.
“It turns out their interest in investing in Indonesia is very high, still very good. This is evidenced by the investments coming in, which are still in line with our plans,” he said at the Presidential Palace Complex on Wednesday, 22 April 2026.
Rosan reported that Indonesia’s investment realisation for the first quarter of 2026 reached Rp498.79 trillion. Investment realisation increased by 7.22% year-on-year (YoY). Of that realisation, the portion of foreign direct investment reached 50.11%.
For foreign direct investment, several countries contributed the largest amounts, namely Singapore at around US$4.6 billion, Hong Kong US$2.7 billion, China US$2.2 billion, the US US$1.7 billion, and Japan US$1 billion.
Meanwhile, several sectors dominated the investments, namely basic metal industries or metal goods such as smelters and others. Then other services, mining, housing, industrial estates, transportation, warehousing, and telecommunications.
Additionally, in the first quarter of 2026, Indonesia secured investment commitments worth a total of Rp1,314.71 trillion following Prabowo’s various visits to countries from the UK to Japan and South Korea.
Then, in the First Quarter 2026 Investment Realisation Press Conference on Thursday, 23 April 2026, Rosan said that among the factors making Indonesia a global investment destination is domestic political and economic stability.
There are also several factors driving global investment flows to Indonesia. According to Rosan, accelerating the energy transition target and the commitment to net zero emissions (NZE) from 2060 to 2050 as targeted by President Prabowo sends a strong signal to global investors.
This is followed by the acceleration of green economy programmes, which are now the government’s focus. This programme is reflected in plans to replace diesel power plants with new renewable energy sources. The government targets the retirement of diesel power plants with a capacity of 13.5 gigawatts (GW), replacing them with solar-powered plants.
According to Rosan, this step aligns with the needs and preferences of foreign investors, who are increasingly focusing on sustainable investments. Green investments are seen not only to provide economic benefits but also to have positive impacts on the environment and quality of life.
“This is certainly in line with the desires of investments, especially from abroad, because this is an investment that also has positive impacts on life and the environment in the future,” he said.
In line with this, Rosan explained that renewable energy projects are starting to attract concrete investment realisations. One example is in the geothermal sector through investments from Japan worth around US$900 million in Aceh, which has reached financial closing and begun construction.
Rosan assessed that the alignment between government programmes and investor preferences is a key factor in increasing green investments.
“These programmes align with their investment appetite. This is also what makes their investments increase even more,” he said.
On the other hand, the government continues to open up incentives to accelerate investments in the green sector. Rosan emphasised that incentives will be more selective, especially for investments that provide broad impacts such as job creation and contributions to clean energy.
This policy differs from the previous approach to nickel downstreaming, which was initially driven by large incentives. Now, incentives will be evaluated along with the maturity of the industrial ecosystem. For the renewable energy sector, the government ensures continued fiscal support to maintain the momentum of green investments entering the country.
Coordinating Minister for the Economy Airlangga Hartarto also stated that there are several factors driving Indonesia as an investment destination. First, Indonesia continues to enhance competitiveness against other countries. He explained that a study from the Japan External Trade Organization (Jetro) shows that compared to all ASEAN countries, what distinguishes investments in Indonesia is the contribution to profits.
“60% of investments in Indonesia generate profits. That is one thing that truly makes Indonesia attractive,” said Airlangga.
Second, according to him, Indonesia is resilient to various shocks, including the current global geopolitical turmoil. Indonesia also has a strong domestic market.
Third, according to him, Indonesia is promoting the development of special economic zones and industrial estates.
“If we look at it, various special economic zones