Investment Ministry Revises Three Regulations to Accelerate Investment and Achieve 8% Economic Growth Target
The Ministry of Investment and Downstreaming – Investment Coordinating Board (BKPM) is currently revising three implementing regulations under Government Regulation No. 5 of 2021 on Risk-Based Business Licensing. The revisions are intended to accelerate investment realisation and achieve the national economic growth target of 8 per cent by 2029.
Deputy Minister of Investment and Downstreaming – BKPM Todotua Pasaribu explained that the three regulations being revised are BKPM Regulation No. 3 of 2021, which governs the Electronically Integrated Risk-Based Business Licensing System; BKPM Regulation No. 4 of 2021, which specifically governs Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities; and BKPM Regulation No. 5 of 2021, which governs Guidelines and Procedures for Risk-Based Business Licensing Supervision.
"This government has an economic growth target heading towards 8 per cent. This is quite an ambitious figure, but also quite realistic if it can be achieved," said Todotua at a Public Consultation on the Draft Regulation of the Minister of Investment and Downstreaming/Head of BKPM on Thursday, 3 July 2025.
He drew a comparison, noting that during the previous government's ten-year tenure, cumulative investment realisation reached approximately Rp 9,900 trillion. Meanwhile, the current administration has set a target of 8 per cent economic growth, meaning that domestic investment over the next five years must reach Rp 13,000 trillion.
"If during the previous government's 10 years, investment realisation was approximately Rp 9,900 trillion, then in the next 5 years to reach the 8 per cent target, we need investment realisation of Rp 13,000 trillion," he explained.
He also revealed that this year's investment target has been raised to Rp 1,900 trillion, up from the 2024 realisation of Rp 1,700 trillion.
He noted that investment realisation in the first quarter of 2025 had reached Rp 465 trillion, and preliminary reports for the second quarter also showed reassuring results.
"The first quarter saw approximately Rp 465 trillion in investment realisation. Then for the second quarter, since Monday I have been receiving reports from the Deputy that the figures are relatively safe. And based on what my deputies have conveyed, hopefully the second quarter will still be on track," he said.
Nevertheless, he acknowledged that his ministry is anticipating challenges in the third and fourth quarters, as investment realisation is highly dependent on licensing services.
Deputy Minister of Investment and Downstreaming – BKPM Todotua Pasaribu explained that the three regulations being revised are BKPM Regulation No. 3 of 2021, which governs the Electronically Integrated Risk-Based Business Licensing System; BKPM Regulation No. 4 of 2021, which specifically governs Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities; and BKPM Regulation No. 5 of 2021, which governs Guidelines and Procedures for Risk-Based Business Licensing Supervision.
"This government has an economic growth target heading towards 8 per cent. This is quite an ambitious figure, but also quite realistic if it can be achieved," said Todotua at a Public Consultation on the Draft Regulation of the Minister of Investment and Downstreaming/Head of BKPM on Thursday, 3 July 2025.
He drew a comparison, noting that during the previous government's ten-year tenure, cumulative investment realisation reached approximately Rp 9,900 trillion. Meanwhile, the current administration has set a target of 8 per cent economic growth, meaning that domestic investment over the next five years must reach Rp 13,000 trillion.
"If during the previous government's 10 years, investment realisation was approximately Rp 9,900 trillion, then in the next 5 years to reach the 8 per cent target, we need investment realisation of Rp 13,000 trillion," he explained.
He also revealed that this year's investment target has been raised to Rp 1,900 trillion, up from the 2024 realisation of Rp 1,700 trillion.
He noted that investment realisation in the first quarter of 2025 had reached Rp 465 trillion, and preliminary reports for the second quarter also showed reassuring results.
"The first quarter saw approximately Rp 465 trillion in investment realisation. Then for the second quarter, since Monday I have been receiving reports from the Deputy that the figures are relatively safe. And based on what my deputies have conveyed, hopefully the second quarter will still be on track," he said.
Nevertheless, he acknowledged that his ministry is anticipating challenges in the third and fourth quarters, as investment realisation is highly dependent on licensing services.