Government Lost Rp1,500 Trillion in Investment Commitments Due to Licensing Issues
Jakarta: Deputy Minister of Investment and Downstreaming/Investment Coordinating Board (BKPM) Todotua Pasaribu acknowledged that his office identified Rp1,500 trillion in unrealised investment commitments in 2024, attributing the shortfall to convoluted licensing procedures.
"This is indeed a classic problem. Every year we record investment realisation, which is inputted by business actors. We found that in 2024, the unrealised investment figure was around Rp1,500 trillion," Todotua said in Jakarta on Thursday, 3 July 2025.
In response, the government through the Ministry of Investment and Downstreaming/BKPM is undertaking a breakthrough to reform the bureaucratic red tape, also aimed at achieving the eight per cent economic growth target.
"With the forthcoming revisions, we hope this will also become a breakthrough step in accelerating, simplifying, and particularly providing certainty regarding business licensing," he said.
Todotua confirmed that his office is currently drafting a Ministerial Regulation on Investment and Downstreaming/Head of BKPM to replace BKPM Regulations Numbers 3, 4, and 5 of 2021, in order to build a conducive business climate and attract investment.
The refinement of these regulations follows Government Regulation Number 28 of 2025 on the Implementation of Risk-Based Business Licensing. This will serve as the foundation for risk-based corporate licensing reform through procedural simplification, strengthening of the Online Single Submission (OSS) system, and enhanced legal certainty.
"Today's public consultation is held with the strategic objective of absorbing constructive input from stakeholders including ministries and agencies, regional governments, business associations, SME operators, and investors regarding the proposed amendments to BKPM Regulations Numbers 3, 4, and 5 of 2021," Todotua explained.
Todotua stated that revisions to the three regulations are necessary to accelerate, simplify, and provide certainty in business licensing. He noted that input from various stakeholders is essential to refine existing policies.
"Naturally, there is a concept that our ministry has prepared regarding a service level agreement framework," he elaborated.
Todotua affirmed that the regulatory changes reflect the Ministry of Investment and Downstreaming/BKPM's genuine readiness to accelerate and boost investment growth figures.
"This represents the pinnacle of the government's commitment to building a conducive business climate rich with investment," Todotua said.
"This is indeed a classic problem. Every year we record investment realisation, which is inputted by business actors. We found that in 2024, the unrealised investment figure was around Rp1,500 trillion," Todotua said in Jakarta on Thursday, 3 July 2025.
In response, the government through the Ministry of Investment and Downstreaming/BKPM is undertaking a breakthrough to reform the bureaucratic red tape, also aimed at achieving the eight per cent economic growth target.
"With the forthcoming revisions, we hope this will also become a breakthrough step in accelerating, simplifying, and particularly providing certainty regarding business licensing," he said.
Todotua confirmed that his office is currently drafting a Ministerial Regulation on Investment and Downstreaming/Head of BKPM to replace BKPM Regulations Numbers 3, 4, and 5 of 2021, in order to build a conducive business climate and attract investment.
The refinement of these regulations follows Government Regulation Number 28 of 2025 on the Implementation of Risk-Based Business Licensing. This will serve as the foundation for risk-based corporate licensing reform through procedural simplification, strengthening of the Online Single Submission (OSS) system, and enhanced legal certainty.
"Today's public consultation is held with the strategic objective of absorbing constructive input from stakeholders including ministries and agencies, regional governments, business associations, SME operators, and investors regarding the proposed amendments to BKPM Regulations Numbers 3, 4, and 5 of 2021," Todotua explained.
Todotua stated that revisions to the three regulations are necessary to accelerate, simplify, and provide certainty in business licensing. He noted that input from various stakeholders is essential to refine existing policies.
"Naturally, there is a concept that our ministry has prepared regarding a service level agreement framework," he elaborated.
Todotua affirmed that the regulatory changes reflect the Ministry of Investment and Downstreaming/BKPM's genuine readiness to accelerate and boost investment growth figures.
"This represents the pinnacle of the government's commitment to building a conducive business climate rich with investment," Todotua said.