Indonesia Targets Investment in Nine Strategic Sectors from Industrial Downstreaming to Nusantara Capital
JAKARTA - 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.
"Indonesia's investment policy prioritises strategic sectors aligned with Sustainable Development Goals principles, which also hold significant potential to spur economic growth," said Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu on Sunday, 26 May.
Todotua added that the nine sectors comprise renewable energy utilisation, industrial downstreaming, food security, the semiconductor industry, and digital economy and data centre development. Additionally, investment is being sought in export-oriented manufacturing, healthcare facilities, IKN construction, and 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 so far harnessed only 13.1 GW. Investment in IKN is directed towards infrastructure, education, hospitals, and hotels.
Furthermore, Todotua said that to attract greater investor interest, the government continues to simplify investment regulations, including revising 79 rules consolidated under the Omnibus Law, centralising investment authority, and streamlining requirements for capital investment.
The government is also offering 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, up 15.9 per cent year-on-year compared with Rp401.5 trillion in the first quarter of 2024.
Rosan said 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.
"Indonesia's investment policy prioritises strategic sectors aligned with Sustainable Development Goals principles, which also hold significant potential to spur economic growth," said Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu on Sunday, 26 May.
Todotua added that the nine sectors comprise renewable energy utilisation, industrial downstreaming, food security, the semiconductor industry, and digital economy and data centre development. Additionally, investment is being sought in export-oriented manufacturing, healthcare facilities, IKN construction, and 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 so far harnessed only 13.1 GW. Investment in IKN is directed towards infrastructure, education, hospitals, and hotels.
Furthermore, Todotua said that to attract greater investor interest, the government continues to simplify investment regulations, including revising 79 rules consolidated under the Omnibus Law, centralising investment authority, and streamlining requirements for capital investment.
The government is also offering 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, up 15.9 per cent year-on-year compared with Rp401.5 trillion in the first quarter of 2024.
Rosan said 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.