Indonesia has set its sights high: an ambitious economic growth target of 8% by 2029. To achieve this, the Ministry of Investment and Downstreaming/BKPM is revising three key regulations, aiming to accelerate the realization of large-scale investment and push the economy forward.
Deputy Minister of Investment and Downstreaming, Todotua Pasaribu, explained that the three regulations under review stem from Government Regulation No. 5 of 2021 on Risk-Based Business Licensing. These include BKPM Regulation No. 3 of 2021, which governs the Electronic Integrated Risk-Based Business Licensing System; BKPM Regulation No. 4 of 2021, covering guidelines and procedures for licensing services and investment facilities; and BKPM Regulation No. 5 of 2021, which focuses on supervision procedures.
“This administration has set an economic growth target of 8 percent. It’s quite ambitious, but also realistic if we can get it done,” said Todotua during the Public Consultation for the Draft Regulation of the Minister of Investment and Downstreaming/Head of BKPM on Friday (4/7/2025).
He noted that over the past decade, actual investment reached around Rp 9,900 trillion. To meet the new growth target, the country needs to secure Rp 13,000 trillion in investment within just five years. “If in the past 10 years we achieved about Rp 9,900 trillion, then in the next five years to reach 8% of economic growth, we need Rp 13,000 trillion,” he said.
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For this year alone, the investment target has been raised to Rp 1,900 trillion. In the first quarter, realized investment hit Rp 465 trillion. Early figures for the second quarter also appear promising. “In the first quarter, we saw around Rp 465 trillion. And in the second quarter, based on reports starting Monday, the figure still looks relatively safe,” Todotua added.
Despite the progress, Todotua warned of challenges ahead, especially in the third and fourth quarters, as investment realization heavily relies on efficient licensing. He emphasized that streamlining regulations is key to avoiding missed opportunities.
Reflecting on past setbacks, Todotua revealed that Indonesia lost potential investment worth up to Rp 2,000 trillion in 2024 due to familiar issues such as complex licensing procedures and an unconducive investment climate. “We found that in 2024, unrealized investment reached around Rp 1,500 trillion, possibly up to Rp 2,000 trillion. Why? Because of problems like this,” he said.
The government hopes the regulatory revisions will turn these lessons into momentum, making it easier for investors to do business and helping Indonesia hit its ambitious economic goals by 2029.
