Investment Ministry Revises Three Business Licensing Regulations to Accelerate Investment
The Ministry of Investment and Downstream Industries/Investment Coordinating Board (BKPM) is currently revising three implementing regulations under Government Regulation Number 5 of 2021 on Risk-Based Business Licensing. The revision is aimed at accelerating investment realisation whilst supporting the national economic growth target of 8 per cent by 2029.
Deputy Minister of Investment and Downstream Industries/BKPM, Todotua Pasaribu, explained that the three regulations under revision comprise BKPM Regulation Number 3 of 2021 on the Electronically Integrated Risk-Based Business Licensing System, BKPM Regulation Number 4 of 2021 on Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities, and BKPM Regulation Number 5 of 2021 on Guidelines and Procedures for Risk-Based Business Licensing Supervision.
"The government currently has an economic growth target of 8 per cent. This is indeed quite an ambitious figure, but also realistic if it can be implemented optimally," said Todotua during a Public Consultation on the Draft Ministerial Regulation on Thursday (3/7/2025).
He added that over the previous ten years of government, investment realisation stood at approximately Rp9,900 trillion. Meanwhile, to pursue the economic growth target, the government is targeting domestic investment realisation of up to Rp13,000 trillion over the next five years.
"If in the previous 10 years we achieved around Rp9,900 trillion, then in the next 5 years we need to achieve around Rp13,000 trillion to reach 8 per cent growth," Todotua explained.
He disclosed that this year's investment target has been raised to Rp1,900 trillion, up from the 2024 realisation of Rp1,700 trillion. Investment realisation in the first quarter of 2025 reached Rp465 trillion, and preliminary reports for the second quarter also indicate results remain on track.
"The first quarter saw around Rp465 trillion in investment realisation. Then in the second quarter, I was informed by the Deputy from Monday that the figures are relatively safe. And according to my deputies, hopefully the second quarter will still be on track," he said.
Nevertheless, he acknowledged that the ministry is anticipating challenges in the third and fourth quarters, as investment realisation is heavily dependent on licensing services.
He recounted that Indonesia lost potential investment of up to Rp2,000 trillion in 2024, caused by various longstanding issues ranging from licensing problems to an unconducive investment climate.
"We found that in 2024, the unrealised investment figure was around 1,500, possibly reaching Rp2,000 trillion. Unrealised investment — why? Because of issues such as licensing, an unconducive investment climate, various overlapping policies, and so on," he said.
To address these business licensing problems, the Ministry of Investment and Downstream Industries, led by Minister Rosan Roeslani, is determined to carry out reforms.
"This must certainly be a note and reflection for all of us. And we at the Ministry of Investment under Minister Rosan Roeslani have a very strong desire to reform this. And particularly, the President always speaks firmly — we are talking about reforming the bureaucracy," he explained.
With the revision of these three Ministerial Regulations on Investment, it is hoped that the business licensing process can be accelerated and simplified.
Deputy Minister of Investment and Downstream Industries/BKPM, Todotua Pasaribu, explained that the three regulations under revision comprise BKPM Regulation Number 3 of 2021 on the Electronically Integrated Risk-Based Business Licensing System, BKPM Regulation Number 4 of 2021 on Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities, and BKPM Regulation Number 5 of 2021 on Guidelines and Procedures for Risk-Based Business Licensing Supervision.
"The government currently has an economic growth target of 8 per cent. This is indeed quite an ambitious figure, but also realistic if it can be implemented optimally," said Todotua during a Public Consultation on the Draft Ministerial Regulation on Thursday (3/7/2025).
He added that over the previous ten years of government, investment realisation stood at approximately Rp9,900 trillion. Meanwhile, to pursue the economic growth target, the government is targeting domestic investment realisation of up to Rp13,000 trillion over the next five years.
"If in the previous 10 years we achieved around Rp9,900 trillion, then in the next 5 years we need to achieve around Rp13,000 trillion to reach 8 per cent growth," Todotua explained.
He disclosed that this year's investment target has been raised to Rp1,900 trillion, up from the 2024 realisation of Rp1,700 trillion. Investment realisation in the first quarter of 2025 reached Rp465 trillion, and preliminary reports for the second quarter also indicate results remain on track.
"The first quarter saw around Rp465 trillion in investment realisation. Then in the second quarter, I was informed by the Deputy from Monday that the figures are relatively safe. And according to my deputies, hopefully the second quarter will still be on track," he said.
Nevertheless, he acknowledged that the ministry is anticipating challenges in the third and fourth quarters, as investment realisation is heavily dependent on licensing services.
He recounted that Indonesia lost potential investment of up to Rp2,000 trillion in 2024, caused by various longstanding issues ranging from licensing problems to an unconducive investment climate.
"We found that in 2024, the unrealised investment figure was around 1,500, possibly reaching Rp2,000 trillion. Unrealised investment — why? Because of issues such as licensing, an unconducive investment climate, various overlapping policies, and so on," he said.
To address these business licensing problems, the Ministry of Investment and Downstream Industries, led by Minister Rosan Roeslani, is determined to carry out reforms.
"This must certainly be a note and reflection for all of us. And we at the Ministry of Investment under Minister Rosan Roeslani have a very strong desire to reform this. And particularly, the President always speaks firmly — we are talking about reforming the bureaucracy," he explained.
With the revision of these three Ministerial Regulations on Investment, it is hoped that the business licensing process can be accelerated and simplified.