Investment Ministry Revises Three Regulations to Accelerate Investment and Achieve 8 Per Cent Growth Target
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) is revising three implementing regulations under Government Regulation Number 5 of 2021 on Risk-Based Business Licensing. The policy revisions are expected to accelerate investment realisation in order to achieve the national economic growth target of 8 per cent by 2029.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, outlined the three regulations under revision.
The first is BKPM Regulation Number 3 of 2021 on the Electronically Integrated Risk-Based Business Licensing System. The second is BKPM Regulation Number 4 of 2021 on Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities. The third is BKPM Regulation Number 5 of 2021 on Guidelines and Procedures for Risk-Based Business Licensing Supervision.
"This government has a target of 8 per cent economic growth. This is an ambitious figure, but also realistic if we work together," said Todotua in a press statement on Saturday (5 July 2025).
The statement was made during a Public Consultation on the Draft Regulation of the Minister of Investment and Downstreaming/Head of BKPM, held on Thursday (3 July 2025).
He noted that over the previous government's ten-year tenure, cumulative investment realisation reached approximately Rp 9,900 trillion. Meanwhile, to achieve the 8 per cent growth target during the current administration, domestic investment needs to reach Rp 13,000 trillion over the next five years.
"If investment realisation over the previous ten years was around Rp 9,900 trillion, then for the next five years, in order for the economy to grow at 8 per cent, we need investment realisation of around Rp 13,000 trillion," said Todotua.
Todotua added that the 2025 investment target has been raised to Rp 1,900 trillion, up from the 2024 realisation of Rp 1,700 trillion. In the first quarter of 2025, investment realisation reached Rp 465 trillion, while preliminary reports for the second quarter also indicate stable performance.
"First quarter investment realisation was around Rp 465 trillion. Then in the second quarter, I was briefed by the deputies from Monday onwards that the figures are relatively secure. And based on what my deputies have reported, hopefully the second quarter will still be on track," he said.
Nevertheless, Todotua acknowledged challenges in the third and fourth quarters, as investment realisation is heavily dependent on the smooth processing of permits. He also revealed that in 2024, Indonesia lost potential investment of up to Rp 2,000 trillion due to persistent issues such as licensing obstacles and an unconducive investment climate.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, outlined the three regulations under revision.
The first is BKPM Regulation Number 3 of 2021 on the Electronically Integrated Risk-Based Business Licensing System. The second is BKPM Regulation Number 4 of 2021 on Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities. The third is BKPM Regulation Number 5 of 2021 on Guidelines and Procedures for Risk-Based Business Licensing Supervision.
"This government has a target of 8 per cent economic growth. This is an ambitious figure, but also realistic if we work together," said Todotua in a press statement on Saturday (5 July 2025).
The statement was made during a Public Consultation on the Draft Regulation of the Minister of Investment and Downstreaming/Head of BKPM, held on Thursday (3 July 2025).
He noted that over the previous government's ten-year tenure, cumulative investment realisation reached approximately Rp 9,900 trillion. Meanwhile, to achieve the 8 per cent growth target during the current administration, domestic investment needs to reach Rp 13,000 trillion over the next five years.
"If investment realisation over the previous ten years was around Rp 9,900 trillion, then for the next five years, in order for the economy to grow at 8 per cent, we need investment realisation of around Rp 13,000 trillion," said Todotua.
Todotua added that the 2025 investment target has been raised to Rp 1,900 trillion, up from the 2024 realisation of Rp 1,700 trillion. In the first quarter of 2025, investment realisation reached Rp 465 trillion, while preliminary reports for the second quarter also indicate stable performance.
"First quarter investment realisation was around Rp 465 trillion. Then in the second quarter, I was briefed by the deputies from Monday onwards that the figures are relatively secure. And based on what my deputies have reported, hopefully the second quarter will still be on track," he said.
Nevertheless, Todotua acknowledged challenges in the third and fourth quarters, as investment realisation is heavily dependent on the smooth processing of permits. He also revealed that in 2024, Indonesia lost potential investment of up to Rp 2,000 trillion due to persistent issues such as licensing obstacles and an unconducive investment climate.