Indonesian Government Targets Investment in Nine Strategic Sectors
JAKARTA - The Indonesian government is focusing on attracting investment to nine sectors ranging from downstreaming and industrial development to new and renewable energy (EBT) and the development of the Nusantara capital city (IKN) in East Kalimantan.
"Indonesia's investment policy prioritises strategic sectors that are also in line with the principles of the Sustainable Development Goals, and have great potential to spur economic growth," said Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu, as reported by ANTARA on Sunday, 26 May.
Todotua added that the nine sectors comprise investment in EBT utilisation, downstream industry, food security, the semiconductor industry, and the development of the digital economy and data centres. Additionally, they include investment in export-oriented manufacturing industries, health facilities, IKN development, and investment in the education and vocational sectors.
The development of EBT is being pursued given that Indonesia has electrification potential of 3,687 gigawatts (GW) but has only utilised 13.1 GW of this capacity. Investment in IKN is intended for infrastructure, education, hospitals and hotels.
Furthermore, Todotua conveyed that to attract more investors, the government continues to simplify investment regulations, such as revising 79 rules consolidated in the Omnibus Law, centralising investment authorities, and simplifying requirements to invest.
In addition, the government also provides incentives in the form of 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 IDR 465.2 trillion, up 15.9 per cent year-on-year compared to IDR 401.5 trillion in the first quarter of 2024.
Rosan said that the first quarter 2025 investment realisation was in accordance 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 that are also in line with the principles of the Sustainable Development Goals, and have great potential to spur economic growth," said Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu, as reported by ANTARA on Sunday, 26 May.
Todotua added that the nine sectors comprise investment in EBT utilisation, downstream industry, food security, the semiconductor industry, and the development of the digital economy and data centres. Additionally, they include investment in export-oriented manufacturing industries, health facilities, IKN development, and investment in the education and vocational sectors.
The development of EBT is being pursued given that Indonesia has electrification potential of 3,687 gigawatts (GW) but has only utilised 13.1 GW of this capacity. Investment in IKN is intended for infrastructure, education, hospitals and hotels.
Furthermore, Todotua conveyed that to attract more investors, the government continues to simplify investment regulations, such as revising 79 rules consolidated in the Omnibus Law, centralising investment authorities, and simplifying requirements to invest.
In addition, the government also provides incentives in the form of 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 IDR 465.2 trillion, up 15.9 per cent year-on-year compared to IDR 401.5 trillion in the first quarter of 2024.
Rosan said that the first quarter 2025 investment realisation was in accordance with the target set by the National Development Planning Agency (Bappenas) for the Ministry of Investment and Downstreaming.