Indonesia Requires Rp 8,297 Trillion in National Investment for 2026, Private Sector to Shoulder 90%
Jakarta, CNBC Indonesia - The Ministry of National Development Planning/National Development Planning Agency (PPN/Bappenas) has outlined Indonesia's national investment requirement of Rp 8,297 trillion for 2026, based on the 2026 Government Work Plan (RKP).
In detail, the largest contribution is expected from private and public investment at Rp 7,467 trillion or 89.99%. State-owned enterprise (BUMN) investment is projected at Rp 480.8 trillion or 5.79%, whilst government investment accounts for Rp 349.9 trillion or 4.22%.
"If we look at the government's share, it is only 4.22% of total investment. The remainder comes from the public and private sector. This is what we have been communicating — that private sector involvement in our development is essential," said Bappenas Director of Macro Planning and Statistical Analysis Eka Chandra Buana during a working meeting with Commission IV of the Regional Representative Council (DPD RI) on Thursday (8 May 2025).
Given the substantial proportion of investment from the private sector, Eka explained that the government must be more proactive in creating a favourable investment environment.
"When we seek to empower the private sector, regulatory licensing and institutional strengthening become things we must address — both at the central and regional levels. How we increase private investment, attract foreign direct investment, and utilise other financing instruments becomes critically important," he said.
For context, the Ministry of Investment and Downstream Industries/Investment Coordinating Board (BKPM) reported that investment realisation during the first quarter of 2025 reached Rp 465.2 trillion, representing approximately 24.4% of the 2025 investment realisation target of Rp 1,905.6 trillion.
In detail, the largest contribution is expected from private and public investment at Rp 7,467 trillion or 89.99%. State-owned enterprise (BUMN) investment is projected at Rp 480.8 trillion or 5.79%, whilst government investment accounts for Rp 349.9 trillion or 4.22%.
"If we look at the government's share, it is only 4.22% of total investment. The remainder comes from the public and private sector. This is what we have been communicating — that private sector involvement in our development is essential," said Bappenas Director of Macro Planning and Statistical Analysis Eka Chandra Buana during a working meeting with Commission IV of the Regional Representative Council (DPD RI) on Thursday (8 May 2025).
Given the substantial proportion of investment from the private sector, Eka explained that the government must be more proactive in creating a favourable investment environment.
"When we seek to empower the private sector, regulatory licensing and institutional strengthening become things we must address — both at the central and regional levels. How we increase private investment, attract foreign direct investment, and utilise other financing instruments becomes critically important," he said.
For context, the Ministry of Investment and Downstream Industries/Investment Coordinating Board (BKPM) reported that investment realisation during the first quarter of 2025 reached Rp 465.2 trillion, representing approximately 24.4% of the 2025 investment realisation target of Rp 1,905.6 trillion.