Pursuing 8 Percent Economic Growth Target, RI Needs Investment Injection Of IDR 13,032 Trillion

Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM, Nurul Ichwan. (Photo: Maria Trisnawati/VOI)

JAKARTA - Deputy for Investment Promotion of the Ministry of Investment and Downstreaming/BKPM, Nurul Ichwan said, the government needs to seek a significant increase in investment to achieve the 8 percent economic growth target by 2029.

To achieve this target, continued Nurul, the government needs a jumbo investment of IDR 13,032 trillion or around 814 billion US dollars in the next five years.

"To achieve the 8 percent economic growth target in 2029 as announced by President Prabowo, Indonesia must attract investment of IDR 13,032 trillion or around 814 billion US dollars in the next five years, with investment growth of around 15.7 percent per year," he said during the CCS Forum 2025 event in South Jakarta, Tuesday, October 7.

Nurul said, Indonesia is one of the main producers of various strategic natural resources (SDA) in the world.

In fact, he continued, it ranks first for nickel, palm oil, rubber, and fish. Also, ranked second for tin and seaweed, and ranked sixth for bauxite.

According to Nurul, with the wealth of Indonesia's natural resources, the government is pushing for a step towards a green economy.

"We have a total potential of around 3,700 gigawatts consisting of diesel, wind, water, tides, bioenergy, and geothermal. Our current installed capacity is around 15.2 gigawatts or less than 1 percent of our potential," he said.

Nurul said, to accelerate the energy transition and maintain industrial competitiveness, the government encourages the construction of Carbon Capture and Storage (CCS) infrastructure.

According to him, this technology is not only environmentally friendly, but also economic demands.

To make it happen, we have to build CCS infrastructure. This is not just an environmental choice, but an impactive economy," he said.

Mengacu pada analisis Rystad Energy, lanjut dia, kapasitas penangkapan karbon global harus meningkat 33 kali lipat dari tingkat saat ini pada 2035 agar sejalan dengan target iklim dunia.

Indonesia sendiri, kata dia, memiliki potensi penyimpanan CO2 sebesar 577 gigaton, terbesar keempat di dunia setelah Amerika Serikat, China, dan Rusia.

“Jadi ini merupakan bagian penting dari penyelesaian global yang diperlukan. Indonesia memiliki potensi besar dari 200 tahun penyimpanan CO2, yang bisa menampung bukan hanya emisi kita sendiri, tetapi juga dari negara-negara di sekeliling, yang menetapkan kita sebagai hub CCS Asia,” jelasnya.

Referring to the analysis of Rystad Energy, he continued, the global carbon capture capacity must increase 33 times from the current level in 2035 to be in line with the world climate targets.

Indonesia itself, he said, has the potential to store 577 gigatons of CO2, the fourth largest in the world after the United States, China, and Russia.

"So this is an important part of the necessary global settlement. Indonesia has great potential from 200 years of CO2 storage, which can accommodate not only our own emissions, but also from the countries around us, which designates us as the hub CCS Asia," he explained.