Indonesian Political, Business & Finance News

Government Raises 2027 Investment Target to Rp 2,322 Trillion

| | Source: NASIONAL.KONTAN.CO.ID Translated from Indonesian | Investment
Government Raises 2027 Investment Target to Rp 2,322 Trillion
Image: NASIONAL.KONTAN.CO.ID

The government has raised its investment realisation target for 2027 to Rp 2,322 trillion. This target is higher than the 2026 investment target of Rp 2,041.3 trillion.

Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan P. Roeslani said the increase in the investment target is in line with the national economic growth target for 2027, which is in the range of 5.8% to 6.5%.

According to Rosan, investment is playing an increasingly important role in supporting national economic growth. From the expenditure side, investment in the second quarter of 2026 grew by 6.87%, higher than household consumption, which grew by 5.06%.

This condition shows that Indonesia’s economic growth is increasingly supported by the formation of production capacity and not only by public consumption.

Rosan said the 2027 investment target is part of the investment requirement of Rp 13,032 trillion throughout 2025-2029. This requirement is equivalent to around 143% of Indonesia’s investment achievement over the past 10 years.

This investment is not state spending, but rather capital investment by business entities, both domestic and foreign, directed at increasing the capacity of the national economy.

In addition to increasing investment value, the government is also continuing to encourage downstreaming to create added value domestically. In the first half of 2026, downstreaming investment realisation reached Rp 300.1 trillion, or 29.7% of total national investment.

This realisation grew by 6.9% compared to the same period the previous year. Downstreaming investment is still dominated by the mineral sector with a value of Rp 206.5 trillion, which includes nickel at Rp 71 trillion, bauxite at Rp 53.8 trillion, copper at Rp 37.4 trillion, iron and steel at Rp 30.2 trillion, and silica sand at Rp 5.9 trillion.

As much as 75.7% of downstreaming investment is located outside Java, especially in Central Sulawesi and North Maluku.

Going forward, the government will expand downstreaming to the plantation, forestry, oil and gas sectors, as well as high-value-added commodities such as semiconductors, bioethanol, coconut derivative products, and seaweed.

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