WTCA: Indonesia Holds the Key to Maintaining Long-Term Investment
Jakarta, TopBusiness—Indonesia recorded investment realisation of Rp1,010.6 trillion in the first half of 2026, an increase of 7.2% compared to the same period the previous year.
“Foreign Direct Investment (FDI) contributed Rp507.6 trillion, or 50.2% of the total, emphasising the vital role of foreign investment in maintaining Indonesia’s investment momentum,” said Scott Wang, Vice President Asia Pacific of the WTCA (World Trade Centers Association), in an official statement received by TopBusiness Magazine today.
Looking ahead, Indonesia’s investment requirements will continue to rise. The government is targeting investment realisation of Rp2,322 trillion by 2027, a 13.8% increase from the 2026 target of Rp2,041.3 trillion. Efforts to achieve this target are taking place amidst an increasingly complex global trade landscape due to geopolitical tensions, supply chain disruptions, energy issues, and changes in tariff policies.
The WTCA believes that these conditions make supply chain diversification and market access increasingly important for Indonesia to maintain its long-term investment attractiveness. Scott Wang noted that relying on a single supply source or market becomes riskier as global trade flows continue to shift.
“Amidst uncertainty, the best strategy is diversification, whether in supply chains, energy sources, or market access. In this way, when one market faces hurdles due to tariff changes, businesses can still access other markets,” said Wang.
He added that the WTCA’s global network and local connectivity can assist companies in expanding and diversifying their business reach.
Indonesia’s relatively neutral geopolitical position provides space for diversification without becoming overly dependent on any specific trade bloc. This position allows Indonesia to maintain relations with various markets while capturing opportunities from shifts in global supply chains, as companies seek alternative production and trade bases.
Indonesia’s advantages are not limited to its potential as a production base. With a population of approximately 280 million and a workforce of around 160 million, Indonesia offers a massive domestic market for companies wishing to establish production facilities while reaching local consumers.
“When multinational companies choose a location for a production or manufacturing base, they consider not only labour costs and export potential but also the strength of the domestic market. In this regard, Indonesia holds a unique position in the region,” he added.
However, a large market and a strategic geopolitical position alone are not enough to guarantee the influx of investment. Wang assessed that Indonesia still needs to strengthen several fundamental aspects, including the investment climate, policy transparency, ease of doing business, and infrastructure development, to ensure these advantages drive long-term investment competitiveness.
This view aligns with the various challenges currently being addressed by the government in pursuit of the 2027 investment targets. The Ministry of Investment and Downstreaming/BKPM has established three main priorities to drive investment realisation: certainty in licensing, the acceleration of project development, and the resolution of various investment obstacles on the ground.