Government Targets Rp 13,000 Trillion in Investment Realisation Over Five Years
Deputy Minister of Investment and Downstreaming/Investment Coordinating Board (BKPM) Todotua Pasaribu has set a target of Rp 13,000 trillion in investment realisation under President Prabowo Subianto's administration. The target is intended to help the government deliver on the President's promise of achieving 8 per cent economic growth, to be reached incrementally over the next five years.
"Over the next five years, as we all know, we have a figure of Rp 13,000 trillion when it comes to investment realisation. Not investment plans, but investment realisation," Todotua said during a Public Consultation on the Draft Regulation of the Minister of Investment and Downstreaming, broadcast on the Ministry's YouTube channel on Thursday (3 July 2025).
Todotua compared this with the previous administration's achievement of approximately Rp 9,900 trillion in investment realisation over ten years, emphasising the need for investment to climb further to support economic growth.
"In the previous government's ten years, investment realisation reached roughly Rp 9,900 trillion. So over the next five years, to reach 8 per cent, we need investment realisation of Rp 13,000 trillion," he explained.
For this year, the government is striving to collect Rp 1,900 trillion in investment. In the first three months of 2025, the government gathered Rp 465 trillion in investment, a 15 per cent increase compared with Rp 401.5 trillion in the same period last year.
**Wasted Investment Potential**
Todotua noted that Indonesia could have attracted Rp 2,000 trillion in investment in 2024, but this was lost due to the sheer volume of regulations complicating the investment process. He explained that lengthy licensing bureaucracy prevented investments from being realised.
"The unrealised investment figure is around Rp 1,500 trillion, possibly reaching Rp 2,000 trillion," Todotua said.
According to him, recurring problems in the licensing process include overlapping regulations between ministries and an unconducive investment climate.
Nevertheless, the government still managed to collect Rp 1,700 trillion in investment in 2024, slightly above the target of Rp 1,650 trillion. Given the regulatory complexity, the Ministry of Investment and Downstreaming has been deregulating investment rules, including licensing provisions for industrial zones, free trade zones, and special economic zones (SEZs).
Under the deregulation measures, Todotua said investors would be able to obtain temporary permits whilst completing the necessary investment requirements. "For investors, the business cycle for their intended investment has often already changed by the time the permit is issued. If the licensing can only be executed one, two, or three years after application, that's a problem," he added.
**2024 Investment Realisation**
The government recorded outstanding investment realisation throughout 2024. Total investment entering Indonesia reached Rp 1,714.2 trillion, growing 20.8 per cent year on year and far exceeding both the Strategic Plan (Renstra) target of Rp 1,239.3 trillion and the Presidential target of Rp 1,650 trillion.
Minister of Investment and Downstreaming Rosan Perkasa Roeslani said the achievement was concrete evidence of Indonesia's attractiveness to global investors, both foreign and domestic. "This investment realisation is well above the Renstra and Presidential targets. It demonstrates investor confidence in Indonesia's continuously improving investment climate," Rosan said.
In detail, Foreign Direct Investment (FDI) contributed Rp 900.2 trillion, growing 21 per cent year on year, whilst Domestic Direct Investment (DDI) reached Rp 814 trillion, up 20.6 per cent year on year.
Beyond value, 2024 investment also recorded significant employment absorption of 2,456,130 workers, a 34.7 per cent increase compared with the previous year. "Compared to 2020, the increase is more than 100 per cent, from 1.156 million to 2.456 million," Rosan added.
The government noted that investment distribution throughout 2024 showed a significant shift away from Java. Of the total Rp 1,714.2 trillion in investment realisation, Rp 895.4 trillion or 52.2 per cent was absorbed by regions outside Java, whilst Java accounted for Rp 818.8 trillion or 47.8 per cent.
"Over the next five years, as we all know, we have a figure of Rp 13,000 trillion when it comes to investment realisation. Not investment plans, but investment realisation," Todotua said during a Public Consultation on the Draft Regulation of the Minister of Investment and Downstreaming, broadcast on the Ministry's YouTube channel on Thursday (3 July 2025).
Todotua compared this with the previous administration's achievement of approximately Rp 9,900 trillion in investment realisation over ten years, emphasising the need for investment to climb further to support economic growth.
"In the previous government's ten years, investment realisation reached roughly Rp 9,900 trillion. So over the next five years, to reach 8 per cent, we need investment realisation of Rp 13,000 trillion," he explained.
For this year, the government is striving to collect Rp 1,900 trillion in investment. In the first three months of 2025, the government gathered Rp 465 trillion in investment, a 15 per cent increase compared with Rp 401.5 trillion in the same period last year.
**Wasted Investment Potential**
Todotua noted that Indonesia could have attracted Rp 2,000 trillion in investment in 2024, but this was lost due to the sheer volume of regulations complicating the investment process. He explained that lengthy licensing bureaucracy prevented investments from being realised.
"The unrealised investment figure is around Rp 1,500 trillion, possibly reaching Rp 2,000 trillion," Todotua said.
According to him, recurring problems in the licensing process include overlapping regulations between ministries and an unconducive investment climate.
Nevertheless, the government still managed to collect Rp 1,700 trillion in investment in 2024, slightly above the target of Rp 1,650 trillion. Given the regulatory complexity, the Ministry of Investment and Downstreaming has been deregulating investment rules, including licensing provisions for industrial zones, free trade zones, and special economic zones (SEZs).
Under the deregulation measures, Todotua said investors would be able to obtain temporary permits whilst completing the necessary investment requirements. "For investors, the business cycle for their intended investment has often already changed by the time the permit is issued. If the licensing can only be executed one, two, or three years after application, that's a problem," he added.
**2024 Investment Realisation**
The government recorded outstanding investment realisation throughout 2024. Total investment entering Indonesia reached Rp 1,714.2 trillion, growing 20.8 per cent year on year and far exceeding both the Strategic Plan (Renstra) target of Rp 1,239.3 trillion and the Presidential target of Rp 1,650 trillion.
Minister of Investment and Downstreaming Rosan Perkasa Roeslani said the achievement was concrete evidence of Indonesia's attractiveness to global investors, both foreign and domestic. "This investment realisation is well above the Renstra and Presidential targets. It demonstrates investor confidence in Indonesia's continuously improving investment climate," Rosan said.
In detail, Foreign Direct Investment (FDI) contributed Rp 900.2 trillion, growing 21 per cent year on year, whilst Domestic Direct Investment (DDI) reached Rp 814 trillion, up 20.6 per cent year on year.
Beyond value, 2024 investment also recorded significant employment absorption of 2,456,130 workers, a 34.7 per cent increase compared with the previous year. "Compared to 2020, the increase is more than 100 per cent, from 1.156 million to 2.456 million," Rosan added.
The government noted that investment distribution throughout 2024 showed a significant shift away from Java. Of the total Rp 1,714.2 trillion in investment realisation, Rp 895.4 trillion or 52.2 per cent was absorbed by regions outside Java, whilst Java accounted for Rp 818.8 trillion or 47.8 per cent.