High Investor Interest Must Be Met with Slashed Bureaucratic Hurdles

Foreign investor interest in Indonesia remains robust amid global economic uncertainty. Amid the government’s claims of increasing international investor confidence, the success of attracting investment must be reinforced by cutting bureaucratic red tape. According to Mohammad Faisal, Executive Director of the Center of Reform on Economics (Core) Indonesia, Indonesia is still viewed as a country with promising long-term economic prospects. The large market potential and economic growth opportunities are the main attractions for global investors. “Basically, investors still see Indonesia as very prospective and possessing great potential. However, the problem lies in policy governance and various investment facilitation procedures which are still obstacles. This needs to be fixed,” Faisal said on Monday (15/6/2026). According to Faisal, a number of foreign investors still place Indonesia as one of the main investment destinations in the Asian region. Survey results on Japanese investors, for instance, show Indonesia’s position is still relatively high compared to several competitor countries, such as Vietnam and India. “Japanese investors still see Indonesia as attractive for various business sectors. So perceptually, Indonesia is still viewed positively,” he said. The statement was made following President Prabowo Subianto’s move to ask Minister of Investment and Downstreaming/Head of BKPM Rosan Roeslani to present the latest data on national investment developments to the public. Citing the Cabinet Secretariat website, President Prabowo summoned a number of Red and White Cabinet members to his residence in Kartanegara, South Jakarta, on Sunday (14/6/2026). The meeting was attended by several ministers and strategic economic officials. Cabinet Secretary Teddy Indra Wijaya explained that during the meeting, President Prabowo received a report from Rosan Roeslani regarding his working visits to the United States and several countries in Europe and Asia. “The report shows valid facts and data on the increasing confidence of the international community in Indonesia, reflected in the high interest and incoming investment in various national strategic sectors,” Teddy said. Following up on the report, President Prabowo stressed the importance of delivering transparent information to the public. The Head of State believes the public needs a complete, fact-based picture of the national investment climate and Indonesia’s future economic prospects. “The President also instructed the Minister of Investment and Downstreaming to convey the positive data to the public openly tomorrow afternoon, Monday, 15 June 2026, at Merdeka Palace, as part of the government’s commitment to presenting complete and fact-based information to the public,” Teddy said. This step affirms President Prabowo’s commitment to building open, transparent, and accountable governance while strengthening public optimism regarding investment prospects and Indonesia’s economic growth amidst evolving global dynamics. Faisal continued that although Indonesia is still seen as important by investors, the biggest challenge lies in the investment implementation process. Various investment commitments announced by the government often face obstacles when entering the realisation stage. These hindrances include licensing, inter-agency coordination, and certainty of policy implementation on the ground. This situation, according to Faisal, often causes initially optimistic investors to face difficulties in executing their investment projects. Therefore, Faisal believes the Investment Coordinating Board (BKPM) needs to have more comprehensive performance metrics. So far, the success of the institution tends to be measured purely by the value of incoming investment. “There need to be additional indicators, not just how much investment value is realised, but also how fast the investment processing is in Indonesia. Speed and ease of investment must be a measure of success,” he said. Besides quantity, the quality of investment also needs greater attention. According to Faisal, every incoming investment project should be assessed not only based on financial feasibility for the investor, but also on economic and social feasibility for the community. This assessment includes the investment’s ability to create jobs, drive regional economic activity, and generate a multiplier effect for other sectors. “Don’t just look at the investment value. There needs to be a measure of investment quality, for example, how many workers are absorbed and how large the multiplier effect is. That needs to be part of the evaluation of every investment project,” he said. On the other hand, Faisal sees the improvement in several domestic financial market indicators as momentum to encourage more productive investment. The strengthening of the Rupiah exchange rate and the recovery of the Composite Stock Price Index (IHSG) should not only boost optimism in portfolio investment but must also be leveraged to attract foreign direct investment.