The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has set an ambitious target of 16.75 percent of annual investment growth in order to support 8 percent economic growth by 2029 as directed by President Prabowo Subianto.
While total investment needs until 2029 are estimated to reach US$ 13.528 trillion or US$ 852 million, this figure reflects the importance of cross sector collaboration to ensure the realization of set targets. With strong synergy between the central government, regions and private sector, Indonesia is optimistic that it can achieve an inclusive and sustainable economic transformation.
“This is not an easy task, and on this occasion we would also like to report that by 2024 January to September, we have reached approximately 76.45 percent of investment achievement or approximately Rp 1,261.43 trillion or US$ 79 billion (of the 2024 investment target of Rp 1,650 trillion or US$ 104 billion) of which the contribution outside Java Island is approximately 50, 34 percent.” Minister of Investment and Downstreaming/BKPM Head, Rosan P. Roeslani, said at the 2024 Investment National Coordination Meeting in Jakarta on Wednesday, December 11, 2024.
Downstreaming
Rosan cited that to get out of the middle-income trap, the government has decided to strengthen the role of the Ministry of Investment through Presidential Regulation (Perpres) N. 184/2024 on the Ministry of Investment and Downstreaming. With a new mandate that includes downstreaming, the ministry is expected to coordinate the downstreaming of strategic investments to accelerate economic transformation and improve global competitiveness.
He emphasized the importance of downstreaming as the foundation of economic transformation. According to him, “downstreaming not only increases added value but also builds national economic competitiveness and independence.” Rosan also responded to strategic issues, including the acceleration of the alignment of downstream tasks and functions in the regions, the adjustment (inpassing) of functional positions for investment administrators at the central and regional levels, and the implementation of fictitious-positive mechanisms in risk-based business licensing.
In support of downstreaming, the Ministry of Investment and Downstreaming/BKPM has developed the Strategic Investment Downstreaming Roadmap, a comprehensive guide designed to accelerate Indonesia’s structural transformation from a mere exporter of raw materials to a major player in the global supply chain. The document covers 28 strategic commodities from eight key sectors: minerals, coal, oil, gas, plantations, marine, fisheries and forestry.
The roadmap is targeted to attract investments worth US$618 billion by 2040, increase Gross Domestic Product (GDP) by US$235.9 billion, create more than 3 million new jobs, and boost export value to US$857.9 billion.
