Towards OECD Standards, Government Prepares to Simplify Investment Regulations

Jakarta – President Prabowo Subianto has instructed the Minister of Investment and Downstreaming/Head of BKPM, Rosan Perkasa Roeslani, to cut several regulations deemed to obstruct investment. This step is part of aligning regulatory standards with those of Organisation for Economic Co-operation and Development (OECD) member countries. Consequently, Indonesia is expected to become increasingly investment-friendly. “Technical approvals (Pertek) must also be evaluated. The President stated that if they are obstructive, they are unnecessary. So, they must be continuously improved,” Rosan told reporters at the State Palace on Tuesday, 21 April 2026. He added that the government will conduct benchmarking with ASEAN countries as well as OECD regulatory standards and others. In addition, President Prabowo emphasised the importance of investment direction that is not only large in nominal value but also capable of creating quality employment opportunities. Rosan revealed that the President has directed that every incoming investment must have a real impact on society, particularly in absorbing labour. “His message is that incoming investments must drive the creation of well-grown, proper, and quality jobs,” Rosan said. The President also stressed the importance of accelerating the execution of investment policies so as not to be hindered by convoluted regulations. “This is very important and must be accelerated immediately. Regulations must not become obstacles,” he explained. Furthermore, Rosan mentioned that several investment commitments show significant figures. From Japan, the potential investment is recorded at nearly USD 30 billion, while from South Korea it is around USD 10 billion. Investments from China are also said to remain high and consistent. He added that this positive trend aligns with the national investment target, which will increase significantly over the next five years. If the total realised investment for the 2014–2024 period reached around Rp9,100 trillion, then for the 2025–2029 period, the target is raised to more than Rp13,000 trillion.