Indonesia Targets Investment in Nine Strategic Sectors from Industrial Downstreaming to Nusantara Capital
Jakarta (ANTARA) - The Indonesian government is focusing on attracting investment into nine sectors ranging from industrial downstreaming and renewable energy development to the construction of the Nusantara Capital (IKN) in East Kalimantan.
This was conveyed by Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu at the Global Business Summit on Belt and Road Infrastructure Investment in Jakarta on Sunday.
"Indonesia's investment policy prioritises strategic sectors that are aligned with the principles of the Sustainable Development Goals and possess significant potential to drive economic growth," said Todotua.
He outlined that the nine sectors include renewable energy utilisation, industrial downstreaming, food security, the semiconductor industry, and digital economy and data centre development. Additionally, the sectors encompass export-oriented manufacturing, healthcare facilities, IKN construction, and investment in the education and vocational training sector.
Renewable energy development is being pursued given that Indonesia possesses electrification potential of 3,687 gigawatts (GW) but has only utilised 13.1 GW of that capacity. Investment in IKN is directed towards infrastructure, education, hospitals and hotels.
Furthermore, Todotua stated that to attract greater investor interest, the government continues to simplify investment regulations domestically, such as revising 79 rules consolidated under the Omnibus Law, centralising investment authority, and streamlining requirements for capital investment.
In addition, the government provides incentives including tax holidays, tax allowances, import duty exemptions and super tax deductions.
Previously, Minister of Investment and Downstreaming/Head of BKPM Rosan Perkasa Roeslani announced that investment realisation in the first quarter of 2025 reached Rp465.2 trillion, a year-on-year increase of 15.9 per cent compared with the first quarter of 2024 figure of Rp401.5 trillion.
Rosan noted that the first quarter 2025 investment realisation was in line with the target set by the National Development Planning Agency (Bappenas) for the Ministry of Investment and Downstreaming.
This was conveyed by Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu at the Global Business Summit on Belt and Road Infrastructure Investment in Jakarta on Sunday.
"Indonesia's investment policy prioritises strategic sectors that are aligned with the principles of the Sustainable Development Goals and possess significant potential to drive economic growth," said Todotua.
He outlined that the nine sectors include renewable energy utilisation, industrial downstreaming, food security, the semiconductor industry, and digital economy and data centre development. Additionally, the sectors encompass export-oriented manufacturing, healthcare facilities, IKN construction, and investment in the education and vocational training sector.
Renewable energy development is being pursued given that Indonesia possesses electrification potential of 3,687 gigawatts (GW) but has only utilised 13.1 GW of that capacity. Investment in IKN is directed towards infrastructure, education, hospitals and hotels.
Furthermore, Todotua stated that to attract greater investor interest, the government continues to simplify investment regulations domestically, such as revising 79 rules consolidated under the Omnibus Law, centralising investment authority, and streamlining requirements for capital investment.
In addition, the government provides incentives including tax holidays, tax allowances, import duty exemptions and super tax deductions.
Previously, Minister of Investment and Downstreaming/Head of BKPM Rosan Perkasa Roeslani announced that investment realisation in the first quarter of 2025 reached Rp465.2 trillion, a year-on-year increase of 15.9 per cent compared with the first quarter of 2024 figure of Rp401.5 trillion.
Rosan noted that the first quarter 2025 investment realisation was in line with the target set by the National Development Planning Agency (Bappenas) for the Ministry of Investment and Downstreaming.