Towards OECD Standards, Government Prepares to Simplify Investment Regulations

President Prabowo Subianto has instructed the Minister of Investment and Downstreaming/Head of BKPM, Rosan Perkasa Roeslani, to slash several regulations deemed to obstruct investment. This step is part of adjusting regulatory standards to those of Organisation for Economic Co-operation and Development (OECD) member countries. Consequently, Indonesia is expected to become increasingly welcoming to investment. “The Pertek (Technical Approval) must also be evaluated. The President said that if it hinders, it is not necessary. So it must continue to be improved,” Rosan stated after meeting the President at the State Palace on Tuesday (21/4/2026). He added that the government will conduct comparisons (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 terms but also capable of creating quality jobs. Rosan revealed that President Prabowo has directed that every incoming investment must have a real impact on society, particularly in absorbing labour. “His message is that incoming investments must be able to drive the creation of jobs that grow well, correctly, and with quality,” Rosan said. President Prabowo 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 several investment commitments showing significant figures. From Japan, the potential investment is recorded at nearly USD30 billion, while from South Korea it is around USD10 billion. Investments from China are also said to remain high and consistent. He added that this positive trend aligns with the national investment target that will increase significantly over the next five years. If in the 2014-2024 period the total realised investment reached around Rp9,100 trillion, then for the 2025-2029 period the target is raised to more than Rp13,000 trillion.