Expert Confident That Simplified Licensing and Regulatory Certainty Will Boost Investment
How can we convince investors that our market is not illusory, given yesterday’s growth?
Professor Telisa Aulia Fali momentum, a Professor at the Faculty of Economics and Business, University of Indonesia (FEB UI), believes that ease of licensing and regulatory certainty can drive increased investment in Indonesia, including achieving the 2026 investment target of Rp2,041 trillion.
Speaking in Jakarta on Monday, Telisa noted that this investment target can be optimistically achieved if the government is able to face various challenges and work harder, considering current global conditions. She assessed that licensing reforms, the reduction of rent-seeking practices, and the strengthening of investment governance are essential steps to enhance Indonesia’s attractiveness amidst global uncertainty.
According to her, the global geopolitical situation and shifts in international economic policies have caused investors to adopt a ‘wait and see’ approach. “If the war continues and there is a change in leadership in the United States itself, including its central bank—where the direction of the Fed remains unclear—uncertainty will increase further,” she said.
Consequently, she urged the strengthening of the Debottlenecking Task Force through broader synergy between ministries and agencies, including improving the quality of public services at both central and regional levels to be more pro-investment.
Furthermore, she noted that Indonesia possesses significant strength in terms of its domestic market and consistently solid economic growth. She believes investors will become increasingly interested if economic growth is felt evenly across regions and supported by strong community purchasing power. “How do we convince investors that our market is not illusory based on previous growth, and that the market truly possesses purchasing power? Investment will certainly arrive if there is confidence in that,” she added.
Telisa also added that the government needs to strengthen policy credibility through government participation guarantees in strategic projects, ensuring that investment risks are measurable and investor interest increases.
Previously, the Minister of Investment and Downstreaming, Rosan Roeslani, stated that investment is a key factor in achieving Indonesia’s economic growth target of 8 per cent amidst global uncertainty and geopolitical tensions. “Investment plays a very significant role, contributing approximately 1.79 per cent to the 5.61 per cent economic growth,” Rosan said during the ‘Kadin Monthly Economic Diplomatic Breakfast’ in Jakarta on Friday.
Rosan stated that the Indonesian economy grew by 5.61 per cent in the first quarter of 2026, with investment contributing approximately 31-32 per cent to total national economic growth. He explained that the contribution of investment to economic growth has increased compared to the previous period, which was in the range of 27-28 per cent.
He noted that domestic consumption remains the largest pillar of Indonesia’s economic growth, while investment is the second-largest contributor. According to Rosan, the national investment target for 2026 is set at Rp2,041.3 trillion, in accordance with the 2026 Government Work Plan (RKP), as part of the effort to drive economic growth towards 8 per cent during the 2025-2029 National Medium-Term Development Plan (RPJMN) period.
In the first quarter of 2026, investment realisation in Indonesia reached Rp498.8 trillion, representing a 7.2 per cent growth compared to the same period last year, while absorbing 706,569 workers.