Video: BKPM's Strategy to Attract Investment Amid High ICOR

Deputy Minister of Investment and Downstreaming, Todotua Pasaribu, discussed the progress and targets for investment and downstreaming to support the government’s goal of 8% economic growth and Rp 13,000 trillion in investment realisation over five years. The Investment Coordinating Board (BKPM) noted that in 2026, investment contributed 29% to national economic growth. Consequently, BKPM continues to push for increased investment realisation through improving the investment climate, enhancing licensing services, and promoting downstream industries in the mineral and coal, plantation and forestry, oil and gas, fisheries and marine sectors, as well as new and renewable energy businesses. These efforts face challenges, including Indonesia’s high Incremental Capital Output Ratio (ICOR) score, which remains around 6.3 to 6.5, indicating lower efficiency compared to regional neighbours such as Vietnam. To attract investment and encourage downstream projects, the ministry is implementing several strategies, including simplifying licensing through the Online Single Submission (OSS) platform.