Government Reveals Nine Priority Sectors for Attracting Investment
JAKARTA - Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu has revealed nine sectors that the government is prioritising when attracting investment.
These nine strategic sectors are considered to be aligned with the points contained in the Sustainable Development Goals (SDGs).
"Indonesia's direct investment policy prioritises strategic sectors aligned with the SDGs with the greatest potential to drive economic growth," said Todotua at the Global Business Summit at the BKPM office, Gatot Subroto, South Jakarta, on Sunday (25/5/2025).
In his presentation, Todotua revealed that the first priority sector is renewable energy.
Next is the downstreaming of various commodities including nickel, copper, bauxite, palm oil, and seaweed.
Food security is also a government focus for attracting investment. There are two projects in this sector currently being undertaken by the government in Merauke Regency, South Papua, namely a rice granary and a sugar and bioethanol factory.
The fourth priority is semiconductors. This sector is being targeted because Indonesia has the raw materials needed to produce them, such as silica, gallium, copper, bauxite, and gold.
The digital economy and data centres also feature on the list. Indonesia's digital economy market is projected to reach US$210-360 billion by 2030, with a growth rate of 5.9 per cent between 2024 and 2029.
Sixth is exports, focusing on the manufacturing industry. Seventh is healthcare, where Indonesia is prepared to become a provider of medical equipment and services. A Health Special Economic Zone (SEZ) already exists in Sanur, Bali.
Eighth is Nusantara Capital City (IKN). The government is focusing on development in the housing, education, hospital, hotel, and other sectors. The government has also prepared incentives for investors in IKN, such as a 30-year tax holiday. Investors in IKN can also obtain streamlined permits and a 95-year right to cultivate (HGU) that can be extended for the same period.
The ninth and final priority is education, from preschool to higher education. The government is offering incentives in the form of a super deduction tax for the construction of vocational education facilities. Indonesia currently has an Education Special Economic Zone in BSD, Banten.
These nine strategic sectors are considered to be aligned with the points contained in the Sustainable Development Goals (SDGs).
"Indonesia's direct investment policy prioritises strategic sectors aligned with the SDGs with the greatest potential to drive economic growth," said Todotua at the Global Business Summit at the BKPM office, Gatot Subroto, South Jakarta, on Sunday (25/5/2025).
In his presentation, Todotua revealed that the first priority sector is renewable energy.
Next is the downstreaming of various commodities including nickel, copper, bauxite, palm oil, and seaweed.
Food security is also a government focus for attracting investment. There are two projects in this sector currently being undertaken by the government in Merauke Regency, South Papua, namely a rice granary and a sugar and bioethanol factory.
The fourth priority is semiconductors. This sector is being targeted because Indonesia has the raw materials needed to produce them, such as silica, gallium, copper, bauxite, and gold.
The digital economy and data centres also feature on the list. Indonesia's digital economy market is projected to reach US$210-360 billion by 2030, with a growth rate of 5.9 per cent between 2024 and 2029.
Sixth is exports, focusing on the manufacturing industry. Seventh is healthcare, where Indonesia is prepared to become a provider of medical equipment and services. A Health Special Economic Zone (SEZ) already exists in Sanur, Bali.
Eighth is Nusantara Capital City (IKN). The government is focusing on development in the housing, education, hospital, hotel, and other sectors. The government has also prepared incentives for investors in IKN, such as a 30-year tax holiday. Investors in IKN can also obtain streamlined permits and a 95-year right to cultivate (HGU) that can be extended for the same period.
The ninth and final priority is education, from preschool to higher education. The government is offering incentives in the form of a super deduction tax for the construction of vocational education facilities. Indonesia currently has an Education Special Economic Zone in BSD, Banten.