Investment Ministry Reveals Investment and Downstreaming Achievements Towards 8% Economic Growth

Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, has outlined the progress and achievements of investment and downstreaming targets aimed at reaching 8% economic growth and Rp 13,000 trillion in investment realisation within the five-year administration of Prabowo-Gibran. BKPM recorded that in 2026, investment contributed 29% to national economic growth. Consequently, BKPM continues to drive efforts to increase investment realisation by creating a favourable investment climate, improving licensing services, and promoting downstream industries in the mineral and coal, plantation and forestry, oil and gas, fisheries and marine sectors, as well as new and renewable energy (EBT) businesses. On the other hand, Indonesia’s efforts to boost investment face challenges related to the country’s Incremental Capital Output Ratio (ICOR) score, which remains high at around 6.3 to 6.5. This figure is linked to Indonesia’s efficiency, which is still not as good as countries in the ASEAN region such as Vietnam. In an effort to attract investment and promote downstream projects, the Ministry of Investment is implementing several strategies, including easing licensing through the Online Single Submission (OSS) platform.