Video: Indonesia's Competitive Advantages in Attracting Investment: Natural Resources and Local Market

The global economy in 2026 faces pressures from escalating geopolitical tensions following the United States and its ally Israel bombing Iran. Secretary of the Indonesian Coordinating Ministry for the Economy, Susiwijono Moegiarso, assured that the government is monitoring and preparing anticipatory measures against the heating geopolitical tensions in the Middle East. This US-Iran war will primarily affect crude oil prices and the global logistics chain. Amid the turmoil of the Middle East war, Indonesia continues to promote domestic and foreign investments focused on industries that provide added value. Additionally, Special Economic Zones (SEZs) are being developed to attract investments offering fiscal and non-fiscal incentives. Indonesia is also innovating to drive investments in SEZs by strengthening cooperation with other governments, including through trade agreements like the IEU-CEPA (Indonesia-European Union Comprehensive Economic Partnership Agreement). This step is expected to expand market access for Indonesian industrial products and downstream processing developed in SEZs. Efforts to increase Indonesian exports amid the Middle East war turmoil are being pursued by promoting downstream processing with emerging themes such as clean energy, technology, and the digital economy like data centres. In attracting investments, Indonesia offers several advantages such as natural resources and downstream processing, a large domestic market, demographic bonus, and trade schemes with many countries. What are Indonesia’s efforts and challenges in attracting investments to boost the economy? For more details, watch the dialogue between Andi Shalini and Secretary of the Indonesian Coordinating Ministry for the Economy, Susiwijono Moegiarso, in Profit CNBC Indonesia on Friday (6/3/2026).