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

The Investment Ministry is pursuing several strategies to attract investment and boost downstream projects, including simplifying licensing through the Online Single Submission (OSS) platform. The ministry noted that in 2026, investment contributed 29% to national economic growth. Efforts are being intensified to foster a favourable investment climate, enhance licensing services, and promote downstream industries in the mineral and coal, plantation and forestry, oil and gas, and fisheries and marine sectors, as well as new and renewable energy businesses. These measures are being taken despite challenges such as Indonesia’s Incremental Capital Output Ratio (ICOR) remaining high at around 6.3 to 6.5, indicating efficiency levels that lag behind regional peers like Vietnam.