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Rabu, 11 Desember 2024

Minister of Investment Joins Forces with DPMPTSP, Target Investments of Rp 13,528 Trillion

Jakarta, December 11, 2024 – The Ministry of Investment and Downstream Industry/Investment Coordinating Board (BKPM) holds the 2024 National Coordination Meeting (Rakornas) on Investment in Jakarta on Wednesday (11/12). With the theme “Accelerating Downstream Development and Sustainable Investment Towards Golden Indonesia,” the event is kicked off by the Minister of Investment and Downstream Industry/Chairman of BKPM, Rosan Perkasa Roeslani.

Rosan stated that this year’s Rakornas became an important momentum to strengthen national harmony to realize the economic growth target of 8% by 2029, as directed by President Prabowo Subianto. Investments are expected to grow at an average of 16.75% per year to support the national economic transformation towards Golden Indonesia 2045. The total investment needed until 2029 is estimated to reach Rp 13,528 trillion. This figure underscored the importance of cross-sectoral collaboration to ensure the realization of the set targets. With strong harmony among the central government, regional governments, and the private sector, Indonesia is optimistic about achieving inclusive and sustainable economic transformation.


“This is no easy task, and on this occasion, we also want to report that from January to September 2024, we have reached approximately 76.45% of the investment target, or around Rp1,261.43 trillion (out of the 2024 investment target of Rp1,650 trillion), with contributions outside Java accounting for approximately 50.34%,” Rosan continued.

Rosan conveyed that to escape the middle-income trap, the government enhanced the role of the Ministry of Investment through Presidential Regulation (Perpres) Number 184 of 2024 on the Ministry of Investment and Downstream Industry. With its new mandate covering downstream development, this ministry was expected to coordinate strategic downstream investments to accelerate economic transformation and enhance global competitiveness.


Minister Rosan emphasized the importance of downstream development as the foundation of economic transformation. According to him, “downstream development not only increases value added but also builds competitiveness and national economic independence.” Rosan also addressed strategic issues, including accelerating the alignment of downstream development tasks and functions in the regions, adjusting (inpassing) the functional positions of investment management officers at the central and regional levels, and implementing a fictitious-positive mechanism in risk-based business licensing.


To support the downstream development, the Ministry of Investment and Downstream Industry/BKPM has developed Strategic Investment Downstream Development Roadmap, a comprehensive guide designed to accelerate Indonesia’s structural transformation from a mere exporter of raw materials to a key player in the global supply chain. This document encompasses 28 strategic commodities across eight main sectors: minerals, coal, oil, natural gas, plantations, maritime, fisheries, and forestry. The roadmap aims to attract investments worth USD 618 billion by 2040, increase Gross Domestic Product (GDP) by USD 235.9 billion, create over 3 million new jobs, and boost export value to USD 857.9 billion.


Attending the Rakornas, Coordinating Minister for Economic Affairs Airlangga Hartarto also emphasized, in his keynote speech, the importance of sustainable downstreaming to ensure economic independence amid global challenges. Airlangga was optimistic that the 8% growth target can be achieved by optimizing existing investment infrastructure, thereby increasing productivity.


“We do not want our dependency on commodities or raw materials to continue. Globally, this is known as the Dutch Disease, where declining commodity prices disrupt people’s welfare. Downstream development must proceed with deepening structures in industries, particularly in the manufacturing sector,” Airlangga said. He added that the manufacturing sector, which contributed nearly 20% to GDP, must continue to be encouraged to enhance value added.


The two-day Rakornas began with the Central and Regional Investment Policy Consolidation Meeting (RKKIPD) on December 10, 2024. This meeting was attended by more than 1,000 participants, including Heads of Provincial and Regency/City Investment and One-Stop Integrated Services (DPMPTSP), Heads of Special Economic Zone (SEZ) Administrators, Heads of Free Trade and Port Zone Authorities (KPBPB), and other invited guests. The main focus of the RKKIPD was two group session meetings to formulate strategies for accelerating sustainable downstream strategic investment based on leading commodities in the region.


The Minister of Investment and Downstream Industry expressed appreciation for the increase in investment realization, especially in downstream agenda and sustainable investment sectors, which were certainly the fruit of positive contributions from Provincial and Regency/City DPMPTSPs, KEK Administrators, and KPBPB across Indonesia. The Ministry of Investment and Downstream Industry/BKPM would continue collaborating with central and regional governments in implementing the Strategic Investment Downstream Development Roadmap, be they in identifying regional leading commodities, the most optimal value-added downstream products, and the necessary action plans to increase investor confidence, strengthen legal certainty, or in harmonize central and regional regulations. (*)


For further information, contact:

Ahmad Faisal Suralaga

Head of Bureau of Communications and Information Services

Ministry of Investment and Downstream Industry/BKPM

E-mail: humas@bkpm.go.id


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