Investors Queue to Enter Indonesia, Coordinating Ministry Shares Evidence

Jakarta, CNBC Indonesia - The government has stated that investors are still queuing to invest in Special Economic Zones (KEK), despite the Purchasing Manufacturers’ Index (PMI) entering a contraction zone in June 2026. Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso explained that while the monthly manufacturing PMI figure declined, expectations for the next six to twelve months remain positive. “When reading the PMI, there are expectations for the next 6 months, 12 months. That component is actually positive. So we cannot just look at the spot figure,” he said when met by the media at the Coordinating Ministry for Economic Affairs office on Monday (6/7/2026). Data from S&P Global released on Wednesday (1/7/2026) showed Indonesia’s PMI was at 46.9 in June 2026. Susiwijono added that incoming investments are largely in the manufacturing sector, but these cannot be compared on a monthly basis because construction and factory setup require two to three years. Meanwhile, business players view the current conditions as momentum for the government to accelerate investment realisation through the establishment of new economic zones. Akhmad Maruf Maulana, Chairman of the Indonesian Industrial Estates Association (HKI), stated that accelerating the licensing process for KEKs is an effective way to drive industrial activity and create new economic growth centres. “When manufacturing activity is slowing down, we need to accelerate the birth of new growth centres. One of the most effective instruments is speeding up KEK licensing so that investment can be realised immediately and create new economic activity,” he told CNBC Indonesia on Monday (6/7/2026). He revealed that investor interest in Indonesia remains quite high, as evidenced by the many proposals for the development or expansion of KEKs currently being processed by the government. These include KEK Wiraraja Madura, KEK Digital Bekasi, KEK Industri Halal Sidoarjo, KEK Batuta Chemical Industrial Park (BCIP), KEK Patimban, KEK Subang, KEK Mangkupadi, and the expansion of KEK Nongsa in Batam. The number of proposals shows that business confidence in Indonesia’s investment prospects has not waned. Therefore, the evaluation process needs to be accelerated without reducing the quality of studies or legal certainty for investors. “We hope the government can speed up the entire evaluation and licensing process for KEKs without compromising the quality of the studies. Time certainty is one of the main factors in investment decisions. The faster investments are realised, the faster jobs are created, production capacity increases, and the wheels of the economy turn,” he concluded.