Video: Indonesia's Tactics to Attract Investment and Expand Exports as War Rages

Jakarta, CNBC Indonesia — The global economy in 2026 faces pressure as geopolitical tensions mount following the United States and its ally Israel’s bombardment of Iran. Secretary of the Coordinating Ministry for Economic Affairs of the Republic of Indonesia (Kemenko Perekonomian RI), Susiwijono Moegiarso, said the government is monitoring developments and taking anticipatory measures to address the intensifying tensions in the Middle East. The US–Iran conflict is expected to affect crude oil prices and the global supply chain. Amid the turmoil of the Middle East war, Indonesia continues to push investment from domestic and foreign sources that focus on value-added industries. In addition, Special Economic Zones (KEKs) are being developed to attract investment with fiscal and non-fiscal incentives. Innovations to promote investment in KEKs are also being pursued by the Republic of Indonesia by strengthening cooperation with other governments, including through trade agreements such as the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA). This move is expected to broaden access to markets for Indonesia’s industrial products and the downstream sectors developed in KEKs. Efforts to boost Indonesia’s exports amid the Middle East war involve promoting downstream development with themes such as clean energy, technology and the digital economy, such as data centres. In attracting investment, Indonesia also offers advantages such as natural resources and downstream development, a large domestic market and a demographic dividend, and trade schemes with many countries. What are the efforts and challenges for Indonesia to attract investment and boost the economy? Watch the dialogue, Andi Shalini with the Secretary of the Coordinating Ministry for Economic Affairs of the Republic of Indonesia, Susiwijono Moegiarso, on Profit CNBC Indonesia, Friday (06/03/2026).