Prabowo Opens Doors to Foreign Investors, Is Indonesia's Investment Climate Truly More Attractive?

President Prabowo Subianto has emphasised that Indonesia remains wide open to investors from all countries amid global geopolitical uncertainty. However, he warned that the era of Indonesia being merely an object of investment without receiving fair benefits is over.

According to Prabowo, Indonesia’s foreign policy of befriending all nations makes it a safe investment destination. Nevertheless, all cooperation must be built on principles of equality and mutual benefit, not unequal relationships. “In this situation, we are open to all partners, all countries that want to enter Indonesia, partner with Indonesia, and work together for mutual benefit. This is our stance. But all parties must also understand that Indonesia has now matured. Indonesian leaders are not foolish, not naive, and not cowards,” Prabowo said during the virtual groundbreaking ceremony for the Masela Block on Thursday, 16 July 2026.

Prabowo also dismissed lingering foreign perceptions that underestimate the work ethic of the Indonesian people. He stressed that the nation’s polite and friendly character should not be seen as a weakness to be exploited. At the same time, Prabowo affirmed the government’s interest in maintaining a business climate that allows investors to profit from their capital. He believes a healthy partnership can only be realised if both sides benefit. “Carry out this project as well as possible on a mutually beneficial basis. Investors must make a profit. As a nation with self-respect and honour, we would be ashamed if our partners were dissatisfied, suffered losses, or were unhappy. Yet, on the other hand, we also bear a great responsibility to our people,” Prabowo stated.

This principle, he continued, is reflected in the development of the Masela Block, which involves Japanese energy company Inpex, Malaysian oil and gas firm Petronas, and national partner PT Pertamina (Persero). Prabowo specifically commended Inpex Masela CEO Takayuki Ueda for his commitment to building relations with Indonesia, including learning the Indonesian language. “I am impressed that you can speak Indonesian. Thank you, Takayuki Ueda. I see that not many foreign company CEOs are willing to learn Indonesian. I believe that with you leading this project, God willing, it will succeed and bring benefits to all of us,” he said.

The government hopes the strategic Masela Block project, with an investment value of USD 20.9 billion (approximately IDR 374.11 trillion), will serve as proof that Indonesia can provide legal certainty, business security, and an attractive investment climate for global investors.

Prabowo’s speech reaffirming Indonesia’s openness to foreign investors comes amid a positive investment trend. However, strategic projects like the Masela Block also serve as a test of whether legal certainty and ease of doing business can truly maintain global investor confidence. Data from the Ministry of Investment and Downstreaming/BKPM shows that realised investment in the first quarter of 2026 reached IDR 498.8 trillion, growing 7.2 percent compared to the same period last year. This figure represents approximately 24.4 percent of the national investment target of IDR 2,041 trillion for 2026.

Of the total realised investment, Foreign Direct Investment (FDI) remained the largest contributor at IDR 250 trillion, or around 50.1 percent. Meanwhile, Domestic Direct Investment (DDI) reached IDR 248.8 trillion, or 49.9 percent. This investment realisation directly absorbed around 706,000 workers. Based on BKPM data, Singapore remains the largest investor in Indonesia with a value of approximately USD 4.6 billion, followed by Hong Kong at USD 2.7 billion, China at USD 2.2 billion, the United States at USD 1.3 billion, and Japan at USD 1 billion. Japan’s presence in the top five aligns with Inpex’s involvement as the main operator of the Masela Block.

In terms of sectors, BKPM noted that investment is still dominated by the base metals industry, services, mining, industrial estates and offices, as well as transportation, warehousing, and telecommunications. The government is also increasingly promoting quality investment, particularly those capable of creating added value through downstreaming programmes. The Masela Block itself is one of the largest energy projects being pushed by the government. With an investment value of USD 20.9 billion, the project is being developed by Inpex alongside Petronas and PT Pertamina (Persero), targeting production of approximately 9.5 million tonnes of LNG per year, 150 million standard cubic feet of gas per day, and around 35,000 barrels of condensate per day. The government hopes this project will boost national energy resilience while strengthening investor confidence in Indonesia’s investment climate.