Rosan Admits Indonesia Needs to Improve Its Investment Climate
The Indonesian government still has several challenges to address in improving the investment climate, particularly in relation to transparency, governance and business certainty. Investment and Downstreaming Minister and BKPM head Rosan Roeslani made the remarks at the 2026 National Leadership Meeting of the Indonesian Chamber of Commerce and Industry (Kadin) on Thursday (29 October 2026), saying reforms were needed to maintain investor confidence and encourage high-quality investment.
According to Money, Rosan said improving policy and governance was the government’s responsibility if Indonesia was to remain attractive to investors. He acknowledged that various issues still needed to be resolved to create a more transparent business environment.
At the meeting, Rosan openly acknowledged that the government still had much work to complete.
“However, we still have a lot of unfinished work on the government side. We have to acknowledge that,” Rosan said.
He stressed that certainty was one of investors’ main considerations before committing capital. This is particularly important for foreign direct investment (FDI), which requires long-term commitments.
Unlike investing in the stock market, direct investment requires companies to build production facilities, factories and smelters. Rosan said such decisions depend on political and security stability, as well as a conducive business environment.
Alongside stability, the government needs to ensure policy consistency so investors can assess risks and plan their business activities. Rosan said businesses want conditions that are predictable and not subject to sudden changes.
He said investors need certainty from the moment they decide to commit capital through to the operation of their businesses.
“Secondly, when investing, they naturally do not like surprises. We do not want anything to be unpredictable. Everything must be measurable, structured and fully certain,” Rosan said.
According to Rosan, certainty is crucial to maintaining investor confidence in Indonesia. Long-term investment requires careful assessment of stability and future business conditions.
Rosan also explained Danantara’s position in the national economic ecosystem. He emphasised that the institution was not intended to replace businesses or take over the private sector’s role.
Instead, Danantara is expected to help strengthen the capabilities of Indonesian businesses through collaboration with various parties. His remarks came amid discussions on building business capacity and strengthening domestic investment.
On investment realisation, Rosan said Indonesia had continued to make positive progress under President Prabowo Subianto’s administration. According to his figures, cumulative investment realisation from the fourth quarter of 2024 to the third quarter of 2026 reached Rp3,923.2 trillion.