Rosan: Investment Becomes Key Factor in Achieving 8 Percent Economic Growth Target
Jakarta (ANTARA) - Minister of Investment and Downstreaming Rosan P Roeslani stated that investment is one of the key factors in achieving Indonesia’s 8 percent economic growth target amid global uncertainties and geopolitical tensions.
“Investment plays a very significant role, contributing around 1.79 percent to the 5.61 percent economic growth,” Rosan said at the “Kadin Monthly Economic Diplomatic Breakfast” event in Jakarta on Friday.
Rosan stated that Indonesia’s economy grew by 5.61 percent in the first quarter of 2026, with investment contributing around 31-32 percent to the total national economic growth.
According to him, the contribution of investment to economic growth has increased compared to the previous period, which was in the range of 27-28 percent.
He explained that domestic consumption remains the largest pillar of Indonesia’s economic growth, while investment is the second largest contributor.
“The largest contribution to our economic growth comes from strong domestic consumption. The second comes from investment,” he said.
Rosan stated that the government is targeting Indonesia’s economic growth to reach 8 percent, thus requiring a significant increase in investment realisation.
According to him, Indonesia’s investment target for 2026 is set at $123.7 billion to support that economic growth.
He explained that Indonesia’s investment realisation during the 2014-2024 period reached around $552.6 billion, while for the next five years, the government is targeting investment realisation of around $789.9 billion.
Rosan stated that this target can be achieved through collaboration between the government, the business world, and international partners.
“For the next five years, the figure is $789.9 billion. That is the number we must achieve to reach that 8 percent growth. This can be achieved if we all work together, collaborate, and synergise,” he said.
He added that Indonesia’s investment realisation in the first quarter of 2026 reached around $30.2 billion and created around 706,659 jobs.
According to him, Singapore remains Indonesia’s largest foreign direct investor, followed by Hong Kong, China, the United States, Japan, South Korea, and the Netherlands.
Rosan also mentioned that around 30 percent of the current national investment contribution comes from downstreaming programmes, particularly in the minerals and energy sectors.
Therefore, the government continues to promote downstreaming in various other sectors, including forestry, oil and gas, fisheries, maritime, and agricultural commodities.
He exemplified Indonesia, which holds around 42 percent of the world’s nickel reserves, thus having great potential to increase added value through mineral industry downstreaming.
“Why are we doing downstreaming in nickel? 42 percent of the world’s nickel reserves are in Indonesia, and if we look at bauxite and copper, we are number two in world reserves,” he said.
According to Rosan, downstreaming not only aims to increase commodity exports but also to strengthen the national industry’s added value and Indonesia’s economic resilience amid global dynamics.