Investment Ministry Requests Over Half a Trillion Rupiah Budget Boost
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has officially requested an additional budget of Rp578.93 billion, or more than half a trillion rupiah, for the 2027 fiscal year. This fresh injection of funds is deemed crucial to boost the national investment realisation target, which is set to reach Rp2,322 trillion.
Minister of Investment and Downstreaming/Head of BKPM, Rosan Roeslani, explained that the 2027 investment target represents a significant increase of 13.8 percent compared to the 2026 target. To support this major leap, meeting the ministry’s budget allocation is non-negotiable.
“To support the achievement of this target, we proposed a budget of Rp2.19 trillion. However, the indicative ceiling we have currently received is Rp625.14 billion,” Rosan said during a working meeting with Commission XII of the Indonesian House of Representatives (DPR RI) on Monday, 15 June 2026.
Rosan openly expressed his concern because the currently allocated indicative ceiling has plummeted by 37.6 percent compared to the 2026 budget ceiling. Ironically, the figure of Rp625.14 billion only covers about 52 percent of the ministry’s minimum operational needs, which ideally should reach Rp1.2 trillion.
“We hope for the support of the leadership and members of Commission XII so that the additional budget of Rp578.93 billion, in line with our minimum needs, can be fulfilled,” he stated.
During the session, Rosan also presented investment achievements for the first quarter of 2026. Amid global geopolitical and geo-economic dynamics, investment realisation was recorded at Rp498.8 trillion, growing 7.2 percent compared to the same period the previous year. This realisation is equivalent to 24.4 percent of the 2026 investment target and successfully absorbed around 750,000 direct jobs.
In terms of investment sources, Domestic Direct Investment (PMDN) contributed Rp248.8 trillion, or 49.9 percent of the total investment. Meanwhile, Foreign Direct Investment (PMA) reached Rp250 trillion, or 50.1 percent.
Rosan explained that investment outside Java Island is beginning to show an increase, with a contribution of 50.4 percent or Rp251.3 trillion, slightly higher than investment in Java, which reached 49.6 percent.
The natural resource downstreaming sector contributed around 30 percent of the total investment realisation in the first quarter of 2026, amounting to Rp147.5 trillion. The largest contribution still came from the mineral processing industry, which reached Rp98.3 trillion.
Going forward, the government will also continue to encourage downstreaming in other strategic sectors such as semiconductors, bioethanol, coconut derivative products, and seaweed.
To support increased investment, the Ministry of Investment and Downstreaming plans to develop an Online Single Submission (OSS) system based on artificial intelligence (AI), big data, and blockchain. In addition, the integration of Detailed Spatial Plans (RDTR) into the OSS system will also be expanded, with an additional target of 400 districts/cities by 2027.
During the meeting, Commission XII of the DPR RI stated that it understood the government’s explanation regarding the indicative ceiling for the Ministry of Investment and Downstreaming for the 2027 fiscal year of Rp625.14 billion. Further in-depth discussions will be conducted with the ministry’s echelon I officials at the next meeting.