Indonesian Industrial Estates Association Optimistic About Investment Prospects

The Indonesian Industrial Estates Association (HKI) is urging businesses and investors to remain optimistic about the national economic outlook amidst global financial market pressures that have triggered the weakening of the Rupiah and a correction in the Jakarta Composite Index (IHSG).

HKI Chairman Akhmad Ma’ruf Maulana stated that current fluctuations in exchange rates and capital markets should be viewed proportionally, as they are part of a common economic cycle during periods of increased global uncertainty. According to Ma’ruf, the pressure on the Rupiah and the stock market is not unique to Indonesia but is being experienced by many other developing nations due to external factors such as high global interest rates, geopolitical tensions, energy price volatility, and shifts in international capital flows.

Ma’larf noted that national economic resilience cannot be measured solely by daily movements in exchange rates or stock indices. More critical is the ability to maintain real economic activity, investment, production, and job creation. HKI believes Indonesia’s economic fundamentals remain strong enough to attract long-term investment, supported by a large domestic market, a demographic bonus, abundant natural resources, ongoing downstreaming programmes, and an increasingly mature network of industrial estates.

Ma’ruf highlighted that these factors remain the primary attractions for investors using Indonesia as a production base and a strategic market within Southeast Asia.

Regarding investment certainty, HKI believes the government needs to accelerate structural reforms to maintain investment competitiveness. The primary focus should not be on reacting to market fluctuations, but on ensuring that investments can enter and be realised more rapidly. Key areas for acceleration include simplifying regulations, speeding up licensing, synchronising central and regional policies, ensuring spatial planning certainty, providing energy, and improving infrastructure quality.

“Investors essentially look for three things: certainty, speed, and ease. When these three elements are provided consistently, Indonesia will remain competitive even as the world faces economic and geopolitical pressures,” he said.

Ma’ruf added that Indonesia has a significant opportunity to capture industrial relocation flows if regulatory reforms and investment acceleration are implemented consistently. “History shows that countries capable of moving quickly amidst uncertainty emerge as winners when the global economy recovers,” he concluded. Consequently, HKI views this as a momentum to strengthen collaboration between the government, business actors, industrial estate managers, and investors to sustain national economic growth.