Indonesia's Q1 2025 Investment Growth Slows as Authorities Highlight Thuggery and Licensing Issues
JAKARTA — Indonesia's investment realisation growth in the first quarter of 2025 slowed compared to the same period last year, with authorities highlighting problems ranging from thuggery to business licensing.
Investment and Downstreaming Minister/BKPM Head Rosan Roeslani reported that investment realisation reached Rp465.2 trillion during January to March 2025, growing 15.9% year on year (YoY). By comparison, investment realisation in Q1 2024 reached Rp401.5 trillion, representing growth of 22.1% YoY — meaning last year's investment growth was higher than this year's.
Rosan declined to comment on the slowdown in investment growth. Nevertheless, he highlighted several issues. The former chairman of the Indonesian Chamber of Commerce and Industry (Kadin) stated that his office wished to continue improving the domestic investment climate.
"How do we provide greater certainty, both in terms of timeframes and licensing," Rosan explained at a press conference at the BKPM office in South Jakarta on Tuesday (29 April 2025).
He also raised the issue of thuggery disrupting the investment climate. Rosan acknowledged receiving complaints from investors regarding such problems.
"We are coordinating with the National Police Chief and also with regional governments to ensure these things do not happen, as they have a negative impact on incoming investment," Rosan said.
Previously, construction of a factory for Chinese electric vehicle manufacturer BYD at the Subang Smartpolitan Industrial Estate in West Java was disrupted by thuggery carried out under the guise of civil society organisations (ormas). This was conveyed by Deputy Speaker of the People's Consultative Assembly (MPR) Eddy Soeparno during a working visit to BYD's assembly centre in Shenzhen, China.
"There were problems related to ormas-linked thuggery disrupting the construction of BYD's production facilities. I believe the government needs to be firm in handling this issue," he said via his Instagram account, as quoted on Monday (21 April 2025).
He stressed that thuggery disguised as ormas activity has the potential to drive investors away, as they cannot obtain security guarantees for investing in Indonesia.
Investment and Downstreaming Minister/BKPM Head Rosan Roeslani reported that investment realisation reached Rp465.2 trillion during January to March 2025, growing 15.9% year on year (YoY). By comparison, investment realisation in Q1 2024 reached Rp401.5 trillion, representing growth of 22.1% YoY — meaning last year's investment growth was higher than this year's.
Rosan declined to comment on the slowdown in investment growth. Nevertheless, he highlighted several issues. The former chairman of the Indonesian Chamber of Commerce and Industry (Kadin) stated that his office wished to continue improving the domestic investment climate.
"How do we provide greater certainty, both in terms of timeframes and licensing," Rosan explained at a press conference at the BKPM office in South Jakarta on Tuesday (29 April 2025).
He also raised the issue of thuggery disrupting the investment climate. Rosan acknowledged receiving complaints from investors regarding such problems.
"We are coordinating with the National Police Chief and also with regional governments to ensure these things do not happen, as they have a negative impact on incoming investment," Rosan said.
Previously, construction of a factory for Chinese electric vehicle manufacturer BYD at the Subang Smartpolitan Industrial Estate in West Java was disrupted by thuggery carried out under the guise of civil society organisations (ormas). This was conveyed by Deputy Speaker of the People's Consultative Assembly (MPR) Eddy Soeparno during a working visit to BYD's assembly centre in Shenzhen, China.
"There were problems related to ormas-linked thuggery disrupting the construction of BYD's production facilities. I believe the government needs to be firm in handling this issue," he said via his Instagram account, as quoted on Monday (21 April 2025).
He stressed that thuggery disguised as ormas activity has the potential to drive investors away, as they cannot obtain security guarantees for investing in Indonesia.