Sunday, August 30, 2026

Indonesia pushes to improve investment climate, remove bottlenecks

by WNAM:
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Jakarta (WNAM MONITORING) Indonesia’s Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) is continuing efforts to improve the national investment climate by streamlining licensing procedures, strengthening legal certainty, and resolving operational hurdles through project debottlenecking.

Speaking at the Jakarta Investment Festival (JIF) Summit 2026 on Friday (August 28), Investment and Downstreaming Minister Rosan emphasized that strengthening legal certainty and removing operational obstacles remain top priorities as global investors shift toward next-generation sectors.

“The next stage of downstreaming will not only focus on minerals and their processing but will also expand into digital infrastructure, technology, innovation, and industry, which will determine future global growth,” Rosan said in a statement on Saturday.

Beyond regulatory facilitation, BKPM aims to improve business predictability, noting that modern investors assess policy stability, infrastructure reliability, and long-term vision alongside production costs and market size.

Rosan highlighted Jakarta’s role as a key engine of national economic growth. In the first semester of 2026, investment realization in the capital reached Rp173.6 trillion (approximately US$10.7 billion), accounting for 17.2 percent of total national investment and placing Jakarta at the top of the regional investment rankings.

The city also accounted for 16.3 percent of Indonesia’s Gross Domestic Product (GDP) in the second quarter.

Investment in Jakarta was led by the transportation, warehousing, and telecommunications sectors at Rp54.4 trillion (US$3.35 billion), followed by other service industries at Rp43.6 trillion (US$2.68 billion), trade and vehicle repairs at Rp28.4 trillion (US$1.75 billion), housing and office space at Rp14 trillion (US$862 million), and construction at Rp12.9 trillion (US$794 million).

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