Despite ongoing uncertainty in the global economy, Indonesia continues to strengthen its position as one of the region’s most attractive investment destinations. According to the government, global investors remain confident that Indonesia can deliver competitive returns while offering the long-term stability needed for major capital commitments.
Minister of Investment and Downstream Industries and Head of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani, said discussions with both domestic and global investors consistently show positive sentiment toward investment climate in Indonesia. One of the strongest factors behind that confidence is the country’s ability to generate attractive investment returns.
“Investors see that investment returns in Indonesia remain acceptable. In terms of the Internal Rate of Return, Indonesia is still highly competitive,” Rosan said at the Presidential Office in the Presidential Palace Complex, Jakarta, on Thursday (July 16, 2026).
He explained that investors understand every investment opportunity comes with a certain level of risk. What matters most, however, is whether those risks can be properly measured and incorporated into financial planning. As long as the risks remain manageable and predictable, investors are willing to continue investing in Indonesia.
In addition to competitive returns, Rosan said investors also value Indonesia’s relatively stable economic, political, and social conditions. Compared with several other countries across Southeast Asia, Indonesia continues to provide an environment that supports long-term business expansion.
This stability is particularly important for foreign direct investment (FDI), which differs significantly from short-term portfolio investment. Companies investing through FDI typically establish long-term operations, making consistency and predictability essential factors in their investment decisions.
“FDI is not the type of investment that can move in and out at any time. Investors commit their capital for the long term, making stability one of the key considerations,” he said.
To further strengthen Indonesia’s competitiveness, the government continues implementing a series of regulatory reforms designed to simplify the investment process. Rosan highlighted Government Regulation No. 28 as one of the key initiatives supporting this effort.
The regulation introduces greater certainty for investors by establishing clear timelines for investment licensing through a Service Level Agreement (SLA) involving relevant ministries and government agencies. According to Rosan, this approach has been well received because it provides greater transparency and reduces uncertainty throughout the licensing process.
The government is also accelerating the digital transformation of its investment services. Licensing systems across 18 ministries and government agencies are currently being integrated into a unified electronic platform to streamline administrative procedures.
Looking ahead, the integrated system will be enhanced through the adoption of blockchain technology and artificial intelligence (AI). These technologies are expected to improve processing speed, strengthen transparency, increase efficiency, and provide a more reliable experience for investors seeking to establish or expand businesses in Indonesia.
Rosan emphasized that improving the investment climate is an ongoing process rather than a one-time initiative. As countries around the world continue introducing their own investment reforms, Indonesia must also continue adapting to remain globally competitive.
“We will continue carrying out reforms to make Indonesia’s investment climate even stronger. Other countries are doing the same, so Indonesia must continue improving its competitiveness,” Rosan concluded.
