Unrealised Investment in Indonesia Could Reach Rp 2,000 Trillion, Deputy Minister Reveals
Jakarta — Deputy Minister of Investment and Downstream Industries/Deputy Head of BKPM Todotua Pasaribu has revealed that a significant volume of investment failed to materialise in 2024. He indicated the figure could reach as high as Rp 2,000 trillion.
"We found that our Ministry also records investment realisation each year, which is inputted by business operators. We found that in 2025, the figure for unrealised investment stands at around Rp 1,500 trillion and may breach the Rp 2,000 trillion mark," he said during a Public Consultation on the Draft Regulation of the Minister of Investment and Downstream Industries/Head of BKPM in Jakarta on Thursday (3 July 2025).
He stated that this is something the government must anticipate going forward, particularly regarding licensing issues. The matter has long been a perennial problem, despite the fact that investment is closely linked to licensing services.
Pasaribu also raised concerns about an unconducive investment climate and overlapping regulations. These issues have prompted the Ministry of Investment and Downstream Industries/BKPM to undertake bureaucratic reform, including streamlining the licensing process.
"The licensing, the unconducive investment climate, various overlapping policies and so forth. This must indeed become a shared note and reflection, and we at the Ministry of Investment have a very strong desire to reform this," he said.
Beyond easing investment procedures, certainty in business licensing will also be prioritised. Pasaribu then outlined 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 the licence within the agreed timeframe.
Pasaribu noted that the Ministry of Investment and Downstream Industries/BKPM handles at least 1,700 types of permits linked to 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 connected to roughly 17 ministries and agencies," he added.
When asked about the timeline for implementing the fictive-positive system, Pasaribu said only 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 that our Ministry also records investment realisation each year, which is inputted by business operators. We found that in 2025, the figure for unrealised investment stands at around Rp 1,500 trillion and may breach the Rp 2,000 trillion mark," he said during a Public Consultation on the Draft Regulation of the Minister of Investment and Downstream Industries/Head of BKPM in Jakarta on Thursday (3 July 2025).
He stated that this is something the government must anticipate going forward, particularly regarding licensing issues. The matter has long been a perennial problem, despite the fact that investment is closely linked to licensing services.
Pasaribu also raised concerns about an unconducive investment climate and overlapping regulations. These issues have prompted the Ministry of Investment and Downstream Industries/BKPM to undertake bureaucratic reform, including streamlining the licensing process.
"The licensing, the unconducive investment climate, various overlapping policies and so forth. This must indeed become a shared note and reflection, and we at the Ministry of Investment have a very strong desire to reform this," he said.
Beyond easing investment procedures, certainty in business licensing will also be prioritised. Pasaribu then outlined 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 the licence within the agreed timeframe.
Pasaribu noted that the Ministry of Investment and Downstream Industries/BKPM handles at least 1,700 types of permits linked to 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 connected to roughly 17 ministries and agencies," he added.
When asked about the timeline for implementing the fictive-positive system, Pasaribu said only 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.