Indonesian Political, Business & Finance News

Investment Ministry Requests Additional Budget of Rp 578.93 Billion

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Investment

The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has requested an additional budget of approximately Rp 578.93 billion from House Commission XII for the 2027 fiscal year. The additional funds are intended to meet the ministry’s minimum budget requirements while supporting the national investment target of Rp 2,322 trillion.

“The Ministry of Investment and Downstreaming/BKPM is tasked with achieving investment realisation, both foreign direct investment (PMA) and domestic direct investment (PMDN), of Rp 2,322 trillion, or 13.8 percent higher than the 2026 target of Rp 2,041.3 trillion,” said Minister of Investment and Downstreaming/Head of BKPM Rosan Roeslani during a working meeting with House Commission XII at the Senayan complex, Central Jakarta, on Monday, 15 June 2026.

Rosan Roeslani explained that the 2027 investment target encompasses both foreign and domestic investment. To support the achievement of this target, the ministry proposed a budget requirement of Rp 2.19 trillion. However, the indicative ceiling received by the ministry for the 2027 fiscal year is only Rp 625.14 billion, a figure that is 37.6 percent lower than the 2026 budget allocation.

According to data presented at the meeting, the initial budget proposal amounted to Rp 2,198,005,015,000, while the indicative ceiling was set at Rp 625,140,705,000. For the management support programme, the initial budget proposal was Rp 603,469,020,000, with an indicative ceiling allocation of Rp 491,213,672,000. An additional budget of Rp 88,733,348,000 was proposed, bringing the minimum budget requirement for this programme to Rp 579,947,020,000.

For the investment and downstreaming programme, the initial budget proposal was Rp 1,594,535,995,000, while the indicative ceiling provided was Rp 133,927,033,000. An additional budget of Rp 490,196,898,000 was proposed, making the minimum budget requirement for this programme Rp 624,123,931,000.

The total additional budget proposed by the Ministry of Investment and Downstreaming/BKPM for the 2027 fiscal year is Rp 578,930,246,000. With this addition, the ministry’s minimum budget requirement for 2027 becomes Rp 1,204,070,951,000.

The indicative ceiling for the 2027 fiscal year refers to the Joint Indicative Ceiling Letter from the Minister of National Development Planning/Head of Bappenas Number B-385/D.9/PP.04.03/05/2026 and the Minister of Finance Number S-228/MK.03/2026 dated 7 May 2026. The proposal for additional budget refers to the Letter from the Minister of Investment and Downstreaming/Head of BKPM Number B-183.S/PA.03.01/A.1/2026 dated 3 June 2026.

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