Health Sector Targeted as New Engine for National Investment - Economy Business

The Ministry of Investment and Downstreaming/BKPM is targeting the health sector as one of the new engines for national investment. Director of Promotion for East Asia, South Asia, Middle East, and Africa at the Ministry of Investment and Downstreaming/BKPM, Cahyo Purnomo, stated that around 2 million Indonesians go abroad for medical treatment every year. According to Cahyo, this situation indicates that the health sector is a fundamental need as well as a major investment opportunity for Indonesia. “The Indonesian government under the leadership of President Prabowo Subianto has also provided guidance on how the health sector plays an important role, including through the transformation process being undertaken,” said Cahyo at a seminar by the Ministry of Investment and Downstreaming/BKPM with the Japan International Cooperation Agency (JICA) in Jakarta on Tuesday (12/5/2026). Furthermore, he conveyed that in the first quarter of 2026, Indonesia’s economy grew by 5.6%, with one of the supports coming from investment. He mentioned that the realisation of health sector investment in 2025 reached US$574 million, the highest in history. Japan is also the third largest investor in Indonesia’s health sector. Cahyo then stated that the government is also facilitating a major Japanese investment in the pharmaceutical sector worth around US$1.4 billion. This investment is directed towards the production of pharmaceutical raw materials, which have previously been imported from China and India. “This is a very important sector where Indonesia’s needs have so far depended on imports,” he said. In addition to pharmaceuticals and medical devices, the government is also offering various investment incentives in the form of fiscal and non-fiscal incentives for potential investors. These fiscal incentives include tax holidays, tax allowances, and other tax relief, especially in special economic zones (SEZs). Meanwhile, non-fiscal incentives relate to business licensing facilitation and administrative aspects.