Investment Booms in Prabowo Era: Regulations Slashed, Indonesia Aims for Global Standards
JAKARTA — Prabowo Subianto is accelerating efforts to strengthen the national investment climate with decisive steps: slashing obstructive regulations and pushing Indonesia to align with global standards. This instruction comes amid a surge in investment realisation that nearly reached Rp500 trillion in the first quarter of 2026.
In a report to the President, Minister of Investment and Downstreaming Rosan Roeslani revealed that first-quarter 2026 investment realisation amounted to Rp498.79 trillion, or 100.36 percent of the Rp497 trillion target. This figure grew 7.22 percent year-on-year and successfully absorbed 706,569 workers.
“Investor interest in Indonesia remains very high despite the world being plagued by geopolitical and geoeconomic uncertainties,” said Rosan at the Presidential Palace Complex in Jakarta on 21 April 2026.
However, President Prabowo assessed that this achievement must be maintained with concrete steps. He emphasised that there should be no more regulations that slow down the flow of investment.
“Our regulations must not hinder. If they hinder, they must be abolished,” Rosan firmly conveyed the President’s directive.
Global Benchmark: From ASEAN to OECD
In addition to deregulation, the President is also pushing for policy improvements by referring to international best practices. Indonesia is urged to benchmark against countries in ASEAN up to the standards of the Organisation for Economic Co-operation and Development to create a more efficient, transparent, and competitive investment climate.
This step is part of the government’s broader strategy to strengthen the long-term economic foundation while accelerating transformation towards high-value-added industries.
Balanced Investment, Downstreaming Sector Dominates
The composition of investments shows a balance between foreign and domestic capital. Foreign investment was recorded at Rp249.94 trillion, while regional distribution was relatively even—outside Java absorbing 50.37 percent and Java 49.63 percent.
The dominant sectors are still related to downstreaming, particularly basic metal industries such as smelters. In addition, sectors such as services, mining, industrial zones, transportation, warehousing, and telecommunications also recorded significant contributions.
Ambitious Target of Rp13,000 Trillion
In the long term, Indonesia’s investment trend shows a significant increase. Over the 2014–2024 period, total investment reached around Rp9,100 trillion. This figure is targeted to jump to more than Rp13,000 trillion in the 2025–2029 period.
This achievement affirms that Indonesia is not only able to maintain investment stability amid global turmoil but is also transforming into an increasingly competitive investment destination on the world stage.