Rosan Roeslani Targets Investment of IDR 13,032 Trillion until 2029 to Chase 8 Percent Growth

JAKARTA - The Investment and Industrialization Ministry targets investment realization of Rp13,032.8 trillion by 2029 to support the 8 percent economic growth target during President Prabowo Subianto's term.

Minister of Investment and Industrialization Rosan Roeslani said the target increased significantly by around 143 percent compared to the investment achievement in the last 10 years.

However, Rosan said the government was not only focusing on the amount of investment that entered, but also the quality of investment that was able to create added value for the national economy.

"Indeed, the increase has been quite significant. However, our investment strategy is not merely pursuing the size of dominance or nominal, but also targeting how the incoming investment is a quality investment," said Rosan in a working meeting at the DPR RI Building, Jakarta, Monday, June 15.

In the midst of global geopolitical and geoeconomic uncertainties, Indonesia's investment realization in the first quarter of 2026 was recorded at Rp. 498.8 trillion. The achievement grew by around 7.2 percent year-on-year and has met 24.4 percent of the investment target for the year.

Not only encouraging economic growth, the incoming investment also has an impact on labor absorption. Throughout January-March 2026, investment recorded an absorption of around 700,000 direct workers or increased by 18.9 percent compared to the same period last year.

"And this figure certainly does not include the number of indirect labor from investment support activities," he said.

Based on the source of financing, Domestic Capital Investment (PMDN) contributed Rp248.8 trillion or 49.9 percent of the total national investment. This figure grew by around 6 percent compared to the previous year. Meanwhile, Foreign Capital Investment (PMA) contributed Rp250 trillion or 50.1 percent of the total investment realization in the first quarter of 2026.

Rosan also highlighted the increasing distribution of investment between Java Island and outside Java. Investment realization in Java reached Rp251.3 trillion or 50.4 percent of the total national, while investment outside Java reached 49.6 percent.

The four provinces on the island of Java that are the main investment destinations are DKI Jakarta, West Java, Banten, and East Java. Meanwhile, outside Java, Central Sulawesi, North Maluku, Riau Islands, West Nusa Tenggara, and East Kalimantan are in the top 10 national investment destination areas.

In terms of business sectors, the largest investment still flows into the basic metal industry, services, mining, housing, industrial areas, offices and logistics, and telecommunications.

Based on the country of origin of investors, Singapore is still the largest contributor to investment with a value of 4.6 billion US dollars. The next position is occupied by Hong Kong with 2.7 billion US dollars, China 2.2 billion US dollars, the United States 1.3 billion US dollars, and Japan 1 billion US dollars.

"Outside of investment from Asia, we also recorded the UK, Netherlands, and Australia in the top 10. So overall Europe and North America each account for 10 percent, showing that the source of investment remains well diversified and global," said Rosan.

Rosan said the downstream processing of natural resources continues to be one of the main engines of national investment. In the first quarter of 2026, investment in the downstream sector reached IDR 147.5 trillion or about 30 percent of the total realization of national investment, growing 8.2 percent year-on-year.

He explained that the mineral sector still dominates downstream investment with a contribution of around 67 percent or Rp98.3 trillion. The rest comes from the plantation and forestry sector of Rp29.8 trillion, oil and gas of Rp17.7 trillion, and fisheries and marine resources of Rp1.7 trillion.

"Indeed, the pattern of the mineral sector still dominates or approximately 67 percent or Rp98.3 trillion, followed by plantations and forestry Rp29.8 trillion, oil and gas Rp17.7 trillion, and fisheries and marine resources Rp1.7 trillion," he explained.

According to Rosan, the government also continues to encourage the development of downstream in new strategic sectors that produce high-value-added products, such as semiconductors, bioethanol, coconut derivatives, and seaweed.

"The downstream industry also contributes greatly to the source of investment outside Java because in the first quarter of 2026, 70 percent of downstream industry is actually outside Java, especially in Central Sulawesi and North Maluku which is supported by nickel downstream and the electric vehicle battery ecosystem," he said.