Indonesia Lost Up to Rp 2,000 Trillion in Potential Investment in 2024, Says Deputy Minister
Jakarta, CNBC Indonesia - Deputy Minister of Investment and Downstreaming/BKPM, Todotua Pasaribu, revealed that Indonesia lost potential investment of up to Rp 2,000 trillion in 2024. This was attributed to various longstanding issues, ranging from licensing problems to an unconducive investment climate.
Todotua explained that investment realisation is highly dependent on licensing services. However, this issue remains the primary obstacle for investors.
"This is indeed a longstanding problem. Every year we record investment realisation, which is 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," he said during the Public Consultation on the Draft Regulation of the Minister of Investment and Downstreaming/Head of BKPM on Thursday (3 July 2025).
He assessed that overlapping policies and various other issues have made investors hesitant to execute their investments. For this reason, he said licensing problems and an unconducive investment climate are sufficiently serious concerns that warrant collective reflection.
To address this, the Ministry of Investment and Downstreaming is currently preparing sweeping reforms to improve the business climate in Indonesia.
"We at the Ministry of Investment, under Minister Rosan Roeslani, have a very strong desire to reform this. And in particular, the President has always been firm in speaking about bureaucratic reform," he said.
He further stated that improving the business climate and licensing is crucial, especially as the government targets 8 per cent economic growth. He noted that achieving this target would require at least Rp 13,000 trillion in investment through to 2029.
"Over the next five years, as we all know, we have a figure of Rp 13,000 trillion for investment realisation. Not investment plans, but investment realisation," he said.
Todotua explained that investment realisation is highly dependent on licensing services. However, this issue remains the primary obstacle for investors.
"This is indeed a longstanding problem. Every year we record investment realisation, which is 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," he said during the Public Consultation on the Draft Regulation of the Minister of Investment and Downstreaming/Head of BKPM on Thursday (3 July 2025).
He assessed that overlapping policies and various other issues have made investors hesitant to execute their investments. For this reason, he said licensing problems and an unconducive investment climate are sufficiently serious concerns that warrant collective reflection.
To address this, the Ministry of Investment and Downstreaming is currently preparing sweeping reforms to improve the business climate in Indonesia.
"We at the Ministry of Investment, under Minister Rosan Roeslani, have a very strong desire to reform this. And in particular, the President has always been firm in speaking about bureaucratic reform," he said.
He further stated that improving the business climate and licensing is crucial, especially as the government targets 8 per cent economic growth. He noted that achieving this target would require at least Rp 13,000 trillion in investment through to 2029.
"Over the next five years, as we all know, we have a figure of Rp 13,000 trillion for investment realisation. Not investment plans, but investment realisation," he said.