Indonesia Records Rp 498.8 Trillion in Investments in Q1 2026

The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) recorded an investment realisation of Rp 498.8 trillion in the first quarter of 2026. This figure represents a 7.2% increase year-on-year from Rp 465.2 trillion in the first quarter of 2025, and a slight 0.4% growth from Rp 496.9 trillion in the fourth quarter of 2025. Minister of Investment and Downstreaming/Head of BKPM Rosan Roeslani expressed gratitude for this achievement, noting that Indonesia remains an attractive destination for both foreign and domestic investors amid current geopolitical and geo-economic challenges. “Alhamdulillah, the Ministry of Investment and Downstreaming, together with the entire business community, both domestic and foreign, and other related agencies, has managed to meet and slightly exceed the investment target for the first quarter of 2026,” he stated at the Ministry of Investment and Downstreaming/BKPM office in Jakarta on Thursday (23/4/2026). Rosan added that this realisation accounts for approximately 24.4% of the total annual investment target of Rp 2,041.3 trillion. “Importantly, the job absorption stands at 706,569 people, a 18.9% increase compared to the previous year,” he further noted. Dominated by Foreign Investment From the total investments entering in the first quarter of 2026, Rp 250 trillion (50.1%) came from foreign direct investment (PMA). The remaining Rp 248.8 trillion (49.9%) originated from domestic direct investment (PMDN). In terms of allocation, approximately Rp 247.5 trillion (49.6%) was invested in Java. Meanwhile, Rp 251.3 trillion (50.4%) was injected outside Java. The largest investment realisation remains in Jakarta, accounting for 15.8% with Rp 78.7 trillion. This is followed by West Java with Rp 76.8 trillion (15.4%), Banten Rp 34.4 trillion (6.9%), East Java Rp 32.6 trillion (6.5%), and Central Sulawesi Rp 32.1 trillion (6.4%). Towards OECD Standards, Government Prepares to Simplify Investment Regulations Previously, President Prabowo Subianto instructed Minister of Investment and Downstreaming/Head of BKPM, Rosan Perkasa Roeslani, to cut several regulations deemed to hinder investment. This step is part of aligning regulatory standards with those of Organisation for Economic Co-operation and Development (OECD) member countries. Thus, Indonesia is expected to become increasingly investment-friendly. “The technical approval (Pertek) must also be evaluated. According to the President, if it hinders, it is not necessary. So it must continue to be improved,” Rosan said after meeting the President at the State Palace on Tuesday (21/4/2025). He added that the government will conduct benchmarking with ASEAN countries as well as OECD regulatory standards and others. In addition, President Prabowo emphasised the importance of investment direction that is not only large in nominal terms but also capable of creating quality jobs. Prabowo’s Directives Rosan revealed that the President directed that every investment entering should have a real impact on society, particularly in job absorption. “His message is that the investments entering must be able to drive the creation of jobs that grow well, correctly, and of quality,” Rosan stated. The President also stressed the importance of accelerating the execution of investment policies so as not to be hindered by convoluted regulations. “This is very important and must be accelerated immediately. Regulations must not become obstacles,” he explained.