Rosan: Fiscal Incentives for Downstreaming Directed to Labour-Intensive Sectors

JAKARTA – The government is beginning to reorient fiscal incentive policies for the downstreaming sector. Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, emphasised that the provision of incentives is no longer solely based on the size of the investment value, but is now prioritised for labour-intensive sectors or those capable of absorbing large numbers of workers.

Rosan explained that the government is evaluating the provision of fiscal incentives, particularly for commodities with established ecosystems such as nickel. This step is taken to ensure that the country’s fiscal support is more on target and able to drive massive job creation.

“If the ecosystem is already formed and running, of course, gradually we will review and evaluate whether the incentives will continue to be provided,” said Rosan during the Press Conference on First Quarter 2026 Investment Realisation and Implementation of the 2025 Indonesian Standard Industrial Classification in Jakarta on Thursday (23/4/2026).

Looking ahead, the government is opening wide opportunities for providing incentives for investments in the renewable energy sector as well as downstreaming of non-mining commodities that are labour-intensive. Rosan underlined that the main parameter now is the socio-economic impact on society.

“Of course, we are open to providing incentives as well. So our parameter is not solely giving incentives because of large investments. But we also look at it from the aspect of workforce absorption,” stated Rosan.

“Perhaps previously it did not receive incentives, but if we look at it this way, perhaps for US$100 million we could potentially provide incentives for such things. If we review it again, workforce absorption becomes a very important consideration for providing incentives,” Rosan clarified.