Jakarta, INTI - The Indonesian government has set an ambitious investment target of IDR 13.032 trillion for the 2025–2029 period. This strategy is a key part of efforts to drive the country’s economic growth to reach 8% by 2029. The announcement was made by the Minister of Investment and Industrial Downstreaming, Rosan Roeslani, during a press conference at the Presidential Palace Complex in Jakarta on January 2, 2025.

Rosan highlighted the critical role of investment in fostering economic growth and creating quality employment opportunities. For 2025 alone, the government is targeting an investment of IDR 1.905 trillion. "The total investment from 2025 to 2029 will amount to just over IDR 13,000 trillion, specifically IDR 13.032 trillion. This is what I have conveyed to President Prabowo," Rosan stated after his meeting with President Prabowo Subianto at the Merdeka Palace.

Investment as the Engine of Economic Growth

The government’s ambitious investment target underscores its commitment to bolstering Indonesia’s economic resilience. The goal is to enhance the contribution of investment to the Gross Domestic Product (GDP), which currently stands at approximately 24–25%. By increasing this figure, investment will serve as a primary driver of the nation’s economic machinery.

Rosan elaborated on the vital role of industrial downstreaming in attracting significant investments to Indonesia. "Downstreaming will play a major role in drawing investments into the country. By processing and refining raw materials domestically, we can significantly increase the value of Indonesian products," he added.

Industrial downstreaming has become a priority for the government, aiming to maximize the utilization of natural resources through domestic processing. Key sectors such as mining, manufacturing, and renewable energy are expected to be at the forefront of this initiative, paving the way for sustainable economic transformation.

Commitments from China and Beyond

During his meeting with the President, Rosan also reported on the outcomes of his recent visit to China. Indonesia successfully secured investment commitments totaling USD 7.46 billion from four major Chinese companies. These investments span strategic sectors, including fiberglass, solar panels, and fisheries.

Among the companies involved, BYD, a leading global manufacturer of electric vehicles, has purchased land in Subang, West Java. "The investment for their manufacturing operations is expected to commence early next year," Rosan revealed. This project is anticipated to significantly contribute to the development of Indonesia’s electric vehicle (EV) industry.

In addition to China, Indonesia is actively engaging with other countries, including the United States and those in the Middle East, to attract substantial investments. These efforts are aimed at diversifying sources of investment and ensuring a balanced inflow of capital.

"The government is also working to secure investments from the Middle East, which holds great potential, particularly in the energy and infrastructure sectors," Rosan said.

Cross-Ministerial Collaboration as the Key to Success

Achieving the investment target of IDR 13.032 trillion is no small feat. Rosan emphasized the importance of collaboration across ministries and agencies to meet this challenging goal. "This is not an easy task; it is an extremely demanding one. Therefore, we need solid cooperation and coordination among all relevant ministries," he explained.

To support these efforts, the government is strengthening the investment ecosystem through bureaucratic reforms and streamlined business procedures. These include accelerating licensing processes, providing fiscal incentives, and enhancing infrastructure to support investments in various regions.

Economic and Social Impact Projections

The projected IDR 13.032 trillion investment is expected to deliver far-reaching economic and social benefits. The government anticipates that this influx of capital will generate millions of new jobs across multiple sectors, reduce unemployment, and improve income levels nationwide.

"The investment should be directed toward creating quality jobs so that its impact can be directly felt by the people," Rosan remarked.

In addition to job creation, investments in renewable energy and high-tech industries are expected to accelerate Indonesia’s transition to a green economy. This aligns with the government’s commitment to achieving carbon neutrality by 2060, a critical goal for ensuring long-term environmental sustainability.

Challenges and Opportunities in Achieving the Target

Despite the optimism surrounding this ambitious target, challenges remain. Global economic uncertainties, geopolitical tensions, and domestic structural issues could potentially impact the realization of the investment goals. However, the government remains confident that these challenges can be addressed through strategic planning and robust policy implementation.

The focus on industrial downstreaming, for example, has already proven to be a key strategy in attracting investments. By requiring the processing of raw materials within the country, Indonesia can offer higher value propositions to investors while simultaneously boosting local industries.

Moreover, the government's efforts to promote renewable energy projects and green technology have positioned Indonesia as an attractive destination for environmentally conscious investors. These sectors not only promise significant returns but also align with global trends toward sustainability.

Vision 2029: Indonesia as an Investment Hub

As the government sets its sights on 2029, the vision of Indonesia as a leading investment destination in Asia becomes increasingly clear. The combination of strategic policies, cross-sector collaboration, and a focus on sustainable development provides a solid foundation for achieving this vision.

"Indonesia has immense potential to become a top investment destination in Asia. With support from all stakeholders, we are confident that we can meet this target and deliver significant benefits for the nation," Rosan concluded.

The journey toward realizing the IDR 13.032 trillion investment target will undoubtedly be challenging. However, with a clear roadmap and unwavering commitment, Indonesia is poised to achieve remarkable economic milestones in the coming years.

• Indonesia
• Investment
• Industrial
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