Rp 1,500 Trillion in Investment Failed to Materialise in 2024, Deputy Minister Reveals
Jakarta - Deputy Minister of Investment and Downstream Industries/Deputy Head of BKPM, Todotua Pasaribu, revealed that Rp 1,500 trillion worth of investment failed to materialise in 2024. Several factors were identified as causes, ranging from licensing issues to competitiveness concerns.
According to him, the government will continue seeking solutions to the obstacles that have long hindered investment. He noted that President Prabowo Subianto has emphasised that the government must be willing to be competitive in order to attract investment to Indonesia.
"The figures we observed in 2024 show a quite significant amount of approximately Rp 1,500 trillion in unrealised investment. What are the main contributing factors? The primary factors are service delivery and licensing. The ease of investing is the second factor. The third is competitiveness. These are indeed areas where we must achieve a breakthrough," he said during the detikcom Indonesia Investment Talk Series on Monday (28 April 2025).
Indonesia has set a target of attracting Rp 13,032 trillion in investment over the next five years, aimed at supporting Prabowo's target of 8 per cent economic growth. Todotua expressed optimism about achieving this target, particularly given the government's efforts to improve the ease of doing business.
This year, the government has set a target of attracting Rp 1,905 trillion in investment, with Rp 465 trillion already achieved in the first quarter of 2025.
"However, we are confident that if we can address those three issues — licensing, ease of investing, and the level of competitiveness for investing in Indonesia — these are all achievable goals," he said.
He stated that the Ministry of Investment and Downstream Industries/BKPM continues to reform its investment licensing processes. The Online Single Submission (OSS) platform for ease of doing business is being continuously improved, and a deemed approval (fiktif positif) mechanism will be implemented in the near future.
Currently, business operators are required to apply for licences from various ministries and agencies before the final permit from the Ministry of Investment and Downstream Industries/BKPM is issued. In practice, this process can take months. Under the deemed approval scheme, business licences will be automatically issued if the relevant technical ministry or agency fails to make a decision within the stipulated timeframe. This would significantly reduce the licensing delays that numerous business operators have long complained about.
"In the near future, we will also implement the deemed approval mechanism, through which we aim to provide fast licensing services and certainty to incoming investors," he added.
Todotua stated that his ministry will continue to oversee the ease of investing from the initial process through to the point where the investment is fully operational. He expressed hope that investment will continue to grow and deliver positive outcomes for Indonesia.
According to him, the government will continue seeking solutions to the obstacles that have long hindered investment. He noted that President Prabowo Subianto has emphasised that the government must be willing to be competitive in order to attract investment to Indonesia.
"The figures we observed in 2024 show a quite significant amount of approximately Rp 1,500 trillion in unrealised investment. What are the main contributing factors? The primary factors are service delivery and licensing. The ease of investing is the second factor. The third is competitiveness. These are indeed areas where we must achieve a breakthrough," he said during the detikcom Indonesia Investment Talk Series on Monday (28 April 2025).
Indonesia has set a target of attracting Rp 13,032 trillion in investment over the next five years, aimed at supporting Prabowo's target of 8 per cent economic growth. Todotua expressed optimism about achieving this target, particularly given the government's efforts to improve the ease of doing business.
This year, the government has set a target of attracting Rp 1,905 trillion in investment, with Rp 465 trillion already achieved in the first quarter of 2025.
"However, we are confident that if we can address those three issues — licensing, ease of investing, and the level of competitiveness for investing in Indonesia — these are all achievable goals," he said.
He stated that the Ministry of Investment and Downstream Industries/BKPM continues to reform its investment licensing processes. The Online Single Submission (OSS) platform for ease of doing business is being continuously improved, and a deemed approval (fiktif positif) mechanism will be implemented in the near future.
Currently, business operators are required to apply for licences from various ministries and agencies before the final permit from the Ministry of Investment and Downstream Industries/BKPM is issued. In practice, this process can take months. Under the deemed approval scheme, business licences will be automatically issued if the relevant technical ministry or agency fails to make a decision within the stipulated timeframe. This would significantly reduce the licensing delays that numerous business operators have long complained about.
"In the near future, we will also implement the deemed approval mechanism, through which we aim to provide fast licensing services and certainty to incoming investors," he added.
Todotua stated that his ministry will continue to oversee the ease of investing from the initial process through to the point where the investment is fully operational. He expressed hope that investment will continue to grow and deliver positive outcomes for Indonesia.