Luhut: Indonesia Will Not Collapse
Head of the National Economic Council (DEN) Luhut Binsar Pandjaitan has affirmed that Indonesia’s economic fundamentals remain solid amid global uncertainty. He urged domestic and international investors not to hesitate to invest in the country, as the government continues to strengthen industry, governance and human resources (SDM).
“My message to investors is very clear and simple: do not hesitate to invest in this country … Our economic fundamentals remain healthy and our long-term prospects are very strong. Indonesia will not collapse,” said Luhut at the Indonesia International Sustainability Forum 2026, quoted on Thursday (8/10/2026).
He acknowledged that Indonesia still faces a number of internal challenges. However, the government is continuing to work on resolving these issues while strengthening the foundations of the national economy.
Luhut said the direction of Indonesia’s investment cooperation is now changing. The government no longer seeks only technology transfer, but is pushing for joint innovation and the improvement of local human resource capabilities.
Promoting Joint Innovation
Luhut said this shift in approach is important for building national industrial capacity over the long term. One example can be seen in the nickel, battery and electric vehicle (EV) sectors.
He encouraged international partners to build joint laboratories, train Indonesian engineers, and give real-world problems to young researchers to find solutions.
In his view, young Indonesian engineers need to be directly involved in research and technology development activities with international partners.
Luhut added that early-stage research requires patient funding. Promising technologies also need to be tested through pilot projects before being developed on a larger scale.
Successful pilot projects, he continued, require additional investment so they can be expanded and deliver greater economic impact.
To sustain Indonesia’s investment, Luhut said the government will maintain policy consistency and simplify bureaucratic procedures. In this way, each investment commitment is expected to be realised as a concrete project at home.