Investment Ministry Revises Three Regulations to Accelerate Investment and Reach 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 regulates the Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities; and BKPM Regulation No. 5 of 2021, which governs the Guidelines and Procedures for Risk-Based Business Licensing Supervision.
"This government has set an economic growth target heading towards 8 per cent. This is a fairly ambitious figure, but also quite realistic if it can be delivered," Todotua said at a Public Consultation on the Draft Ministerial Regulation of Investment and Downstreaming/Head of BKPM on Thursday (3 July 2025).
He compared the previous government's ten-year tenure, during which investment realisation reached approximately Rp 9,900 trillion, with the current administration's target of 8 per cent economic growth. To achieve this, domestic investment over the next five years must reach Rp 13,000 trillion.
"If during the previous government's ten years, investment realisation stood at roughly Rp 9,900 trillion, then over the next five years to reach the 8 per cent target, we need investment realisation of Rp 13,000 trillion," he explained.
He disclosed that the investment target for this year has been raised to Rp 1,900 trillion, up from the 2024 realisation of Rp 1,700 trillion. Investment realisation in the first quarter of 2025 reached Rp 465 trillion, and preliminary reports for the second quarter also indicate the figures remain on track.
"The first quarter saw around Rp 465 trillion in investment realisation. Then for the second quarter, from Monday the Deputy began reporting figures that 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 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 Rp 2,000 trillion in 2024 due to various longstanding issues ranging from licensing problems to an unconducive investment climate.
"We found that in 2024, the figure for unrealised investment was around 1,500, possibly reaching Rp 2,000 trillion. Unrealised investment — why? Because of issues like these: licensing, an unconducive investment climate, various overlapping policies, and so on," he said.
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 regulates the Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities; and BKPM Regulation No. 5 of 2021, which governs the Guidelines and Procedures for Risk-Based Business Licensing Supervision.
"This government has set an economic growth target heading towards 8 per cent. This is a fairly ambitious figure, but also quite realistic if it can be delivered," Todotua said at a Public Consultation on the Draft Ministerial Regulation of Investment and Downstreaming/Head of BKPM on Thursday (3 July 2025).
He compared the previous government's ten-year tenure, during which investment realisation reached approximately Rp 9,900 trillion, with the current administration's target of 8 per cent economic growth. To achieve this, domestic investment over the next five years must reach Rp 13,000 trillion.
"If during the previous government's ten years, investment realisation stood at roughly Rp 9,900 trillion, then over the next five years to reach the 8 per cent target, we need investment realisation of Rp 13,000 trillion," he explained.
He disclosed that the investment target for this year has been raised to Rp 1,900 trillion, up from the 2024 realisation of Rp 1,700 trillion. Investment realisation in the first quarter of 2025 reached Rp 465 trillion, and preliminary reports for the second quarter also indicate the figures remain on track.
"The first quarter saw around Rp 465 trillion in investment realisation. Then for the second quarter, from Monday the Deputy began reporting figures that 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 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 Rp 2,000 trillion in 2024 due to various longstanding issues ranging from licensing problems to an unconducive investment climate.
"We found that in 2024, the figure for unrealised investment was around 1,500, possibly reaching Rp 2,000 trillion. Unrealised investment — why? Because of issues like these: licensing, an unconducive investment climate, various overlapping policies, and so on," he said.