President Prabowo Instructs Regulatory Cuts
JAKARTA – President Prabowo Subianto has instructed the simplification of regulations to drive increased investment in Indonesia, including the reduction of rules considered to hinder investor entry.
The instruction was conveyed to the Minister of Investment and Downstreaming/Head of BKPM, Rosan Perkasa Roeslani, during a meeting at the State Palace on Tuesday (21/4/2026).
“Pertek (Technical Approval) must also be evaluated. The President said that if it hinders, it doesn’t need to exist,” Rosan stated after the meeting.
According to him, this deregulation step is part of efforts to adjust the national regulatory framework to the standards of the Organisation for Economic Co-operation and Development, in line with Indonesia’s target of becoming a full member of the organisation.
The government will also conduct benchmarking of investment regulations with ASEAN countries as well as standards in OECD member countries to enhance national investment competitiveness.
In addition to simplifying rules, the President emphasised the importance of accelerating policy execution so that investments are not hindered by convoluted bureaucracy.
“Investments that enter must be able to create good, proper, and quality jobs,” Rosan said.
This instruction comes amid the government’s target to collect investments exceeding Rp13,000 trillion in the 2025–2029 period, an increase compared to the 2014–2024 realisation of around Rp9,100 trillion.
In the first quarter of 2026, investment realisation was recorded at Rp498.79 trillion, surpassing the target of Rp497 trillion, with growth of 7.22 percent compared to the same period the previous year.
Indonesia itself has been an OECD accession candidate since February 2024 and targets full membership in 2027. The government has also carried out several reforms, including lowering the minimum capital requirements for foreign investors through BKPM Regulation Number 5 of 2025.
This deregulation step is expected to accelerate the flow of investment while improving the quality of national economic growth.