Government Revises Three BKPM Regulations to Accelerate Investment Realisation
The three regulations being revised are BKPM Regulation No. 3/2021 governing the Integrated Electronic Risk-Based Business Licensing System; BKPM Regulation No. 4/2021 on Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities; and BKPM Regulation No. 5/2021 on Guidelines and Procedures for Risk-Based Business Licensing Supervision.
Deputy Minister of Investment and Downstreaming/BKPM Todotua Pasaribu said the revisions are aimed at accelerating investment realisation and achieving the national economic growth target of 8 per cent by 2029.
"The government has an economic growth target of 8 per cent. This is quite an ambitious figure, but also quite realistic if it can be delivered," Todotua said in a written statement on Saturday, 5 July 2025.
Referring to investment realisation over the past decade, approximately Rp9,900 trillion has been recorded. Meanwhile, the current administration has set an economic growth target of up to 8 per cent.
"Over the next five years as we work towards this 8 per cent figure, we need investment realisation of around Rp13,000 trillion," he explained.
For this year, the investment target has been raised to Rp1,900 trillion, up from the 2024 realisation of Rp1,700 trillion. He noted that investment realisation in the first quarter of 2025 reached Rp465 trillion, and preliminary reports for the second quarter also showed reassuring results.
"First quarter investment realisation was around Rp465 trillion. Then in the second quarter, the deputy has reported that the figures are relatively on track," he continued.
Nevertheless, the ministry is anticipating challenges ahead, particularly in the third and fourth quarters, as investment realisation is heavily dependent on licensing services.
He recounted that Indonesia lost potential investment of up to Rp2,000 trillion in 2024 due to various longstanding issues, ranging from licensing problems to an unconducive investment climate.
"In 2024, the figure was around Rp1,500 trillion, possibly reaching Rp2,000 trillion. Unrealised investment — why? Because of issues such as licensing, an unconducive investment climate, various overlapping policies, and so on," he said.
To address these business licensing problems, the Ministry of Investment and Downstreaming, led by Minister Rosan Roeslani, is determined to carry out reforms.
"The Ministry of Investment under Mr Rosan has a very strong desire to reform this. The President has also always been firm in saying that we are talking about reforming the bureaucracy," he concluded.
Deputy Minister of Investment and Downstreaming/BKPM Todotua Pasaribu said the revisions are aimed at accelerating investment realisation and achieving the national economic growth target of 8 per cent by 2029.
"The government has an economic growth target of 8 per cent. This is quite an ambitious figure, but also quite realistic if it can be delivered," Todotua said in a written statement on Saturday, 5 July 2025.
Referring to investment realisation over the past decade, approximately Rp9,900 trillion has been recorded. Meanwhile, the current administration has set an economic growth target of up to 8 per cent.
"Over the next five years as we work towards this 8 per cent figure, we need investment realisation of around Rp13,000 trillion," he explained.
For this year, the investment target has been raised to Rp1,900 trillion, up from the 2024 realisation of Rp1,700 trillion. He noted that investment realisation in the first quarter of 2025 reached Rp465 trillion, and preliminary reports for the second quarter also showed reassuring results.
"First quarter investment realisation was around Rp465 trillion. Then in the second quarter, the deputy has reported that the figures are relatively on track," he continued.
Nevertheless, the ministry is anticipating challenges ahead, particularly in the third and fourth quarters, as investment realisation is heavily dependent on licensing services.
He recounted that Indonesia lost potential investment of up to Rp2,000 trillion in 2024 due to various longstanding issues, ranging from licensing problems to an unconducive investment climate.
"In 2024, the figure was around Rp1,500 trillion, possibly reaching Rp2,000 trillion. Unrealised investment — why? Because of issues such as licensing, an unconducive investment climate, various overlapping policies, and so on," he said.
To address these business licensing problems, the Ministry of Investment and Downstreaming, led by Minister Rosan Roeslani, is determined to carry out reforms.
"The Ministry of Investment under Mr Rosan has a very strong desire to reform this. The President has also always been firm in saying that we are talking about reforming the bureaucracy," he concluded.