Video: Complicated Bureaucracy Hinders Indonesia's Investment Realisation

The Indonesian Industrial Estate Association (HKI) has noted several obstacles for Indonesia in realising investment within industrial estates, ranging from licensing and regulation to inter-agency coordination, all of which increase uncertainty for investors.

The General Chair of the Indonesian Industrial Estate Association, Akhmad Ma’ruf Maulana, stated that Indonesia’s decline in competitiveness in the IMD World Competitiveness Ranking (WCR) 2026—dropping to 48th place out of 70 countries—presents a significant challenge to realising investment.

HKI noted that complicated bureaucracy remains a primary issue faced by investors entering Indonesia. Consequently, improvements and the synchronisation of policies are required, alongside the establishment of an institution to oversee investment realisation.

The Wiraraja Madura Industrial Estate is one of the areas being developed to attract investments in sectors such as bioethanol, furniture, textiles, and solar panels, with potential investments reaching Rp 12 trillion from China, Dubai, and South Korea.