Indonesia targets high-quality investment to fuel economic growth

Jakarta (ANTARA) - The Indonesian government is striving to attract high-quality investment inflows that yield a tangible impact on the national and regional economies, according to Investment and Downstreaming Minister Rosan Roeslani.

"Our investment strategy is not solely focused on large nominations or nominal amounts, but also targets ensuring that incoming investment is of high quality," Rosan stated before Commission XII of the House of Representatives (DPR) on Monday.

He explained that to support the 8 percent economic growth target mandated by President Prabowo Subianto, the government has set a total investment target of Rp13,032.8 trillion (approximately US$736 billion) for the 2025–2029 period.

This target represents a 143 percent increase compared to total investment realization over the previous decade.

Despite the ambitious goal, Rosan—who also serves as head of the Investment Coordinating Board—emphasized that the government remains focused on attracting quality investment capable of creating added value, accelerating infrastructure development, and strengthening the national economic structure.

Amid global geopolitical and economic volatility, Indonesia recorded Rp498.8 trillion (US$28.18 billion) in realized investment during the first quarter of 2026. According to BKPM data, the figure grew by 7.2 percent year-on-year and fulfilled approximately 24.4 percent of the country's 2026 investment target.

The investment realization also generated employment for approximately 700,000 workers, marking an 18.9 percent increase compared to the same period last year.

Domestic investment (PMDN) contributed 49.9 percent of total realized investment, equivalent to Rp248.8 trillion (US$14.05 billion), reflecting annual growth of 6 percent. Meanwhile, foreign direct investment (PMA) accounted for 50.1 percent, or around Rp250 trillion (US$14.12 billion).

The main sectors contributing to investment realization included the basic metals industry, services, mining, housing and industrial estates, as well as transportation, warehousing, and telecommunications.

Rosan also highlighted the growing role of natural resource downstreaming projects, which accounted for 30 percent of total investment realization in the first quarter of 2026, reaching Rp147.5 trillion (US$8.33 billion).

Looking ahead, the Ministry of Investment and Downstreaming will continue encouraging investment in strategic, high-value-added industries, including semiconductors, bioethanol, coconut derivatives, and seaweed downstream processing.

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Translator: Ahmad Muzdaffar Fauzan, Yashinta Difa

Editor: M Razi Rahman

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