Jakarta, INTI – Indonesia’s Minister of Investment and Downstreaming/Chairman of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani, delivered a compelling speech at the 12th US-Indonesia Investment Summit held in Jakarta on Tuesday (26/11). Rosan emphasized the government’s commitment to attracting high-quality investments to achieve sustainable and inclusive economic growth.
Strategic Role of Investment in Economic Growth
In his address, Rosan highlighted the crucial role of investment in driving Indonesia's economic progress. He detailed the country's current economic growth structure, which is powered by several key components.
“To achieve an 8% growth target, domestic consumption contributes approximately 53-54%, while investments account for around 24-25%. Government spending adds 8-9%, and net exports (exports minus imports) contribute about 2% to our national economic growth,” Rosan explained.
He elaborated on the government’s strategic measures to create a more favorable investment climate for foreign investors. Among these is the implementation of the Omnibus Law, which revised the negative investment list. This reform reduced the number of sectors closed to foreign investment from over 100 to just five.
Optimism Amid Economic Challenges
Joining Rosan at the forum, Luhut Binsar Pandjaitan, Chairman of the National Economic Council and Special Presidential Advisor for Digitalization and Government Technology, underscored Indonesia's resilience amidst global economic uncertainties. He noted that despite these challenges, Indonesia achieved a robust economic growth rate of 5.2% last year.
“This demonstrates the strong foundation of our economy. Looking ahead, we are optimistic about achieving a 6% growth rate in 2024 through structural reforms and improved efficiency across sectors,” Luhut stated.
He further highlighted Indonesia’s low debt-to-GDP ratio and a manageable budget deficit of around 2.5-3%, which provide ample fiscal space to sustain economic momentum.
Focus on Downstreaming and Sustainability
Rosan also emphasized downstreaming as a cornerstone of Indonesia’s investment strategy. Over the past five years, the country has significantly boosted its capacity to process raw materials into high-value products, increasing state revenue and generating employment opportunities.
Renewable energy emerged as a key focus. Rosan noted that Indonesia has a renewable energy potential of 3,700 gigawatts, including hydro, wind, wave, and geothermal energy. As the world’s largest holder of geothermal reserves, Indonesia offers immense opportunities for foreign investors to support the transition to cleaner energy.
“We invite global partners to collaborate in unlocking this vast potential. We need not only technology but also investments and expertise to meet our carbon emission reduction targets,” Rosan remarked.
Strategic Collaboration with US Companies
The US-Indonesia Investment Summit continued with a sidelines meeting involving Indonesian government representatives and executives from 22 prominent US companies. Notable participants included Bank of America, Chevron, ExxonMobil, Google, IBM, Meta, Pfizer, and Mastercard.
Discussions focused on investment opportunities in strategic sectors such as renewable energy, digital technology, healthcare, and education. Company representatives expressed enthusiasm for Indonesia’s initiatives to foster a conducive investment environment.
Praise for Indonesia’s Economic Policies
Rosan’s policies have garnered international recognition. Sir Tony Blair, speaking at a separate investment forum in London, commended Indonesia’s economic strategies. “The Indonesian government has demonstrated exceptional competence in understanding the needs of businesses. Their collaborative approach makes Indonesia a highly attractive strategic partner for global investors,” Blair stated.
Support for Inclusive Economic Growth
The summit not only strengthened bilateral relations between Indonesia and the United States but also reflected a shared vision for fostering inclusive and sustainable economic growth. By collaborating across various sectors, Indonesia aims to enhance its global competitiveness while solidifying its position as Southeast Asia’s premier investment hub.