Government Prepares to Simplify Investment Regulations

Jakarta: President Prabowo Subianto has instructed the Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani, to cut several regulations deemed to obstruct investment. This step is part of adjusting regulatory standards to those of Organisation for Economic Co-operation and Development (OECD) member countries. As such, Indonesia is expected to become increasingly investment-friendly. “Technical Approvals (Pertek) must also be evaluated. The President said that if they are obstructive, they are not necessary. So, they must continue to be improved,” Rosan stated after meeting the President at the State Palace on Tuesday, 21 April 2026. He added that the government will conduct comparisons (benchmarking) with ASEAN countries as well as OECD regulatory standards and others. In addition, President Prabowo stressed the importance of investment direction that is not only large in nominal value but also capable of creating quality jobs. Rosan revealed that the President has directed that every incoming investment should have a real impact on society, particularly in absorbing labour. “His message is that incoming investments must be able to drive the creation of jobs that grow well, correctly, and with quality,” said Rosan. The President also emphasised the importance of accelerating the execution of investment policies so as not to be hindered by convoluted regulations. “This is very important and must be accelerated immediately. Regulations must not become obstacles,” he explained. Furthermore, Rosan mentioned that several investment commitments show significant figures. From Japan, the potential investment is recorded at nearly USD 30 billion, while from South Korea it is around USD 10 billion. Investments from China are also said to remain high and consistent. He added that this positive trend aligns with the national investment target, which will increase significantly over the next five years. If the total realised investment for the 2014–2024 period reached around Rp9,100 trillion, then for the 2025–2029 period, the target is raised to more than Rp13,000 trillion.