Rp 1,500-2,000 Trillion in Investment Failed to Materialise in 2024, Says Deputy Investment Minister
Jakarta - Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu said that Rp 1,500-2,000 trillion in investment failed to materialise in 2024.
"We found, and our Ministry also records investment realisation each year as inputted by business actors, that the unrealised investment figure in 2024 was around Rp 1,500 trillion and may have reached Rp 2,000 trillion," he said during the Public Consultation on the Draft Regulation of the Minister of Investment and Downstreaming/Head of BKPM in Jakarta on Thursday (3 July 2025).
According to Todotua, the government will anticipate such issues going forward. The unrealised investments were linked to the ease of licensing services, which he described as a longstanding problem in the country.
He also raised concerns about an unconducive investment climate and overlapping regulations. This has prompted the Ministry of Investment and Downstreaming/BKPM to undertake bureaucratic reform, including streamlining licensing processes.
"The licensing, the unconducive investment climate, the various overlapping policies and so on — this must serve as a collective note and reflection, and our Ministry of Investment has a very strong desire to reform this," he said.
Beyond easing investment procedures, certainty in business licensing will also be prioritised. Todotua mentioned the government's plan to implement a fictive positive system. Under this mechanism, business permits would be automatically issued if the relevant technical ministry fails to process them within the agreed timeframe.
The Ministry of Investment and Downstreaming/BKPM handles 1,700 types of permits involving approximately 17 ministries and government agencies.
"There is a concept called fictive positive, which is aimed at providing certainty. Our Ministry, as I mentioned, handles 1,700 types of permits linked to approximately 17 ministries and agencies," he added.
When asked about the timeline for implementing the fictive positive system, Todotua only stated that the government would apply it as soon as possible. He also touched on the government's readiness to accelerate and boost investment growth figures.
"We found, and our Ministry also records investment realisation each year as inputted by business actors, that the unrealised investment figure in 2024 was around Rp 1,500 trillion and may have reached Rp 2,000 trillion," he said during the Public Consultation on the Draft Regulation of the Minister of Investment and Downstreaming/Head of BKPM in Jakarta on Thursday (3 July 2025).
According to Todotua, the government will anticipate such issues going forward. The unrealised investments were linked to the ease of licensing services, which he described as a longstanding problem in the country.
He also raised concerns about an unconducive investment climate and overlapping regulations. This has prompted the Ministry of Investment and Downstreaming/BKPM to undertake bureaucratic reform, including streamlining licensing processes.
"The licensing, the unconducive investment climate, the various overlapping policies and so on — this must serve as a collective note and reflection, and our Ministry of Investment has a very strong desire to reform this," he said.
Beyond easing investment procedures, certainty in business licensing will also be prioritised. Todotua mentioned the government's plan to implement a fictive positive system. Under this mechanism, business permits would be automatically issued if the relevant technical ministry fails to process them within the agreed timeframe.
The Ministry of Investment and Downstreaming/BKPM handles 1,700 types of permits involving approximately 17 ministries and government agencies.
"There is a concept called fictive positive, which is aimed at providing certainty. Our Ministry, as I mentioned, handles 1,700 types of permits linked to approximately 17 ministries and agencies," he added.
When asked about the timeline for implementing the fictive positive system, Todotua only stated that the government would apply it as soon as possible. He also touched on the government's readiness to accelerate and boost investment growth figures.