Realization Of Indonesia's Investment Loses To Vietnam, BKPM Reveals The Cause

JAKARTA - Deputy Minister of Investment and Downstreaming / Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu revealed that the reason for the realization of investment in Indonesia was still inferior to Vietnam.

Todotua said that one of them was due to the investment licensing process which took up to two years.

"I also want to say that in this forum, our country has a cycle of investment, this realization is approximately four to five years," said Todotua at the Indonesia Green Mineral Investment Forum (IGMIF) 2025 event in Jakarta, Thursday, October 2.

"Where does the contribution come from? Take care of the licensing alone is approximately two years of average, (then) two years of construction. So this cycle is four years from the start of his entry or his PMA comes in, making his company PMA here until he starts commercial it's more or less that much," he added.

Todotua then compared Indonesia's investment realization period with conditions in Vietnam.

According to him, the realization of investment in Vietnam only takes two years.

"Vietnam has entered its biennial level today. When he wants to build (the factory), he just needs to enter the construction level," he said.

The condition of Indonesia, which is still lagging behind, said Todotua, must be a correction to the investment service system in the field.

One of the things the government is currently doing is implementing a positive fictitious system for licensing.

This means that the administrative permit granting process which is immediately granted when the application for licensing is not quickly responded to by the relevant agencies within the specified time limit.

"In the context of a positive fictitious (system) there are already around 132 permits in 1,200 KBLI (published)," he concluded.