Indonesia Lost Rp 2,000 Trillion in Potential Investment in 2024 Due to Overlapping Regulations
Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu revealed that Indonesia lost potential investment worth Rp 2,000 trillion in 2024. The primary cause was overlapping regulations and an unconducive investment climate.
He explained that regulatory issues remain a perennial problem in the context of capital investment in Indonesia. According to his records, approximately Rp 1,500 to 2,000 trillion in investment failed to materialise.
"We found that our ministry also records investment realisation figures each year, which are inputted by business operators. We found that in 2024, the figure for unrealised investment was around Rp 1,500 trillion, possibly reaching Rp 2,000 trillion," said Todotua during the Public Consultation on the Draft Regulation of the Minister of Investment and Downstreaming in Jakarta on Thursday (3 July 2025).
He explained that among the causes were overlapping regulations and an unconducive investment climate in Indonesia.
"Why was there unrealised investment? Because of issues such as these — the licensing environment, an unconducive investment climate, various overlapping policies, and so on," he said.
Nevertheless, Indonesia still recorded substantial investment inflows throughout 2024, reaching Rp 1,700 trillion — slightly above the designated target of Rp 1,650 trillion.
He explained that regulatory issues remain a perennial problem in the context of capital investment in Indonesia. According to his records, approximately Rp 1,500 to 2,000 trillion in investment failed to materialise.
"We found that our ministry also records investment realisation figures each year, which are inputted by business operators. We found that in 2024, the figure for unrealised investment was around Rp 1,500 trillion, possibly reaching Rp 2,000 trillion," said Todotua during the Public Consultation on the Draft Regulation of the Minister of Investment and Downstreaming in Jakarta on Thursday (3 July 2025).
He explained that among the causes were overlapping regulations and an unconducive investment climate in Indonesia.
"Why was there unrealised investment? Because of issues such as these — the licensing environment, an unconducive investment climate, various overlapping policies, and so on," he said.
Nevertheless, Indonesia still recorded substantial investment inflows throughout 2024, reaching Rp 1,700 trillion — slightly above the designated target of Rp 1,650 trillion.