Government Targets IDR 2,322 Trillion Investment in 2027

The government is targeting investment realisation of IDR 2,322 trillion in 2027, an increase of IDR 280.7 trillion or approximately 13.8 per cent compared to the 2026 target of IDR 2,041.3 trillion. The target was set in accordance with the Government Work Plan (RKP).

Investment Minister and Head of the Investment Coordinating Board (BKPM) Rosan Roeslani stated that investment is playing an increasingly significant role in economic growth. In the second quarter of 2026, the investment component grew 6.87 per cent year-on-year and contributed around 39 per cent to national economic growth. ‘Investment contributed approximately 39 per cent of total growth in the second quarter, above the normal range of 28 per cent,’ Rosan said during a press conference on the 2027 Government Work Plan and Budget in Jakarta on Friday.

President Prabowo Subianto has targeted economic growth of 6 per cent for 2027. In the first half of 2026, investment realisation reached IDR 1,010.6 trillion, growing 7.2 per cent year-on-year and achieving 49.5 per cent of the annual target. This investment absorbed 1,448,862 workers, a 15 per cent increase compared to the same period the previous year.

Rosan emphasised that economic growth and downstreaming are not the ultimate goals, but rather must lead to improved public welfare. ‘Every rupiah of investment must create good, quality jobs while also improving the quality of life for our people,’ he said.

Of the total investment realised in the first half of 2026, downstream sector investment reached IDR 300.1 trillion, or 29.7 per cent of the total, growing 6.9 per cent year-on-year. Mineral downstreaming dominated with IDR 206.5 trillion, followed by plantation and forestry downstreaming at IDR 54.4 trillion, oil and gas at IDR 35.4 trillion, and fisheries and marine at IDR 3.8 trillion. The government is encouraging greater downstream investment in the plantation and forestry sectors due to their higher potential for job absorption, despite their nominal values currently trailing the mineral sector.