Indonesia Remains Attractive to Investors, But These Are the Barriers

Business leaders believe Indonesia remains highly attractive to global investors. The country’s large domestic market, industrial downstreaming agenda, and position in global supply chains are still key magnets for new investments.

However, despite strong interest, industry players note persistent challenges reported by investors, particularly regarding the speed of investment processes and policy certainty on the ground. Investors now also weigh bureaucratic efficiency and inter-agency regulatory alignment.

‘Investor interest in entering Indonesia remains high. Their concern is how investment processes can be faster, more coordinated, and have clear timelines. This is what we discussed with the Presidential Staff Office,’ said HKI Chairman Akhmad Ma’ruf Maulana to CNBC Indonesia on Friday (29 May 2026).

Most current investment barriers could be accelerated with more effective inter-ministerial and inter-agency coordination. Investors need process certainty to expedite business decisions.

Amid intense global competition for investment, HKI urges the government to strengthen cross-sector coordination and expedite resolution of licensing and land use obstacles.

‘Investment competition is no longer just between regions but between nations. Investors compare Indonesia with Vietnam, Malaysia, and other regional countries. Therefore, legal certainty, time certainty, and decision-making speed are critical factors for national investment competitiveness,’ he said.

HKI currently has over 170 industrial zones across 24 provinces, covering approximately 160,000 hectares. These zones support national manufacturing development, industrial downstreaming, and job creation.

HKI has raised these issues with the government, specifically the Presidential Staff Office (KSP) led by Dudung Abdurachman, including the implementation of National Strategic Projects (PSN), development of Special Economic Zones (KEK), the Spatial Use Activity Compliance (KKPR) process, and coordination of land use with agricultural land protection policies. Investment climate in Batam was also discussed.

‘Indonesia has a strong opportunity to become a new industrial growth hub in Asia. With strong coordination, regulatory certainty, and on-ground execution speed, we are optimistic that investments will continue to grow, job opportunities will expand, and national economic growth targets will be met,’ Ma’ruf said.