Indonesian Political, Business & Finance News

Minister Rosan Seeks Rp578 Billion Budget Boost to Chase Rp2,322 Trillion Investment Target

| | Source: RMOLLAMPUNG.ID Translated from Indonesian | Investment
Minister Rosan Seeks Rp578 Billion Budget Boost to Chase Rp2,322 Trillion Investment Target
Image: RMOLLAMPUNG.ID

The Ministry of Investment and Downstreaming/BKPM has proposed an additional budget of Rp578.93 billion for the 2027 fiscal year. The extra funds are deemed crucial to support the national investment realisation target, which is set at Rp2,322 trillion. Minister Rosan Roeslani conveyed the proposal during a working meeting with House Commission XII on Monday, 15 June 2026. He noted that the 2027 investment target represents a 13.8 percent increase from the 2026 target. To achieve this, the ministry has proposed a total budget of Rp2.19 trillion. However, the indicative ceiling currently received stands at only Rp625.14 billion, a 37.6 percent drop compared to the 2026 allocation and barely 52 percent of the ministry’s minimum requirement of Rp1.2 trillion. Rosan expressed hope that the commission would support the additional budget request. During the session, he also outlined investment achievements for the first quarter of 2026. Amid global geopolitical and geo-economic dynamics, realised investment reached Rp498.8 trillion, growing 7.2 percent year-on-year and equivalent to 24.4 percent of the 2026 target, directly employing 750,000 workers. Domestic investment contributed Rp248.8 trillion (49.9 percent), while foreign investment reached Rp250 trillion (50.1 percent). Investment outside Java showed improvement, contributing 50.4 percent or Rp251.3 trillion. The downstream natural resources sector accounted for 30 percent of total Q1 realisation, or Rp147.5 trillion, with mineral processing dominating at Rp98.3 trillion. The government plans to further promote downstreaming in semiconductors, bioethanol, coconut derivatives, and seaweed. To support investment growth, the ministry intends to develop an AI, big data, and blockchain-based Online Single Submission (OSS) system and expand the integration of Detailed Spatial Plans (RDTR) into OSS, targeting an additional 400 districts/cities by 2027. The House commission acknowledged the ministry’s indicative budget ceiling and will conduct further reviews with ministry officials in subsequent meetings.

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