Prabowo’s Vision: US$820 Billion Investment Push Aims to Lift Indonesia’s Economy to 8% Growth

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REPUBLIKA.CO.ID, JAKARTA — The Indonesian government has set an ambitious target to realize Rp13,000 trillion (US$820 billion) in investment over the next five years in a bid to drive national economic growth to 8 percent, in line with President Prabowo Subianto’s vision.

Deputy Minister of Investment and Downstreaming/Deputy Chairman of the Investment Coordinating Board (BKPM), Todotua Pasaribu, said the target will serve as the main foundation for Indonesia’s investment policy direction for the 2025–2029 period.

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According to Todotua, the new goal represents a significant leap compared to the previous decade, when Indonesia’s economic growth hovered between 4–5 percent and total investment reached around Rp9,200 trillion.

“For the next five years, we’re pursuing Rp13,000 trillion,” Todotua said during a working meeting with the House of Regional Representatives’ (DPD) Committee IV in Jakarta on Tuesday (4/11/2025).

He emphasized that boosting investment is a key pillar in accelerating national economic transformation. The strategy, he explained, will not only focus on raising the overall value of investment but also on expanding sectoral bases and ensuring balanced distribution across all regions.

To achieve the target, the Ministry of Investment/BKPM has prepared several strategic measures, including improving the quality of business licensing services, refining fiscal and non-fiscal policies, and offering various incentives to strengthen Indonesia’s investment competitiveness.

“We’re focusing on licensing services, fiscal and non-fiscal regulatory strategies, and creating a more conducive investment climate,” he said.

Todotua added that BKPM currently operates through eight deputy divisions, which handle promotion, the Online Single Submission (OSS) platform, cooperation, supervision, and downstreaming, among others — all aimed at boosting value-added growth and industrial development.

As of the third quarter of 2025, Indonesia has already achieved Rp1,434 trillion in realized investment, or about 75 percent of this year’s target of Rp1,915 trillion — a 13.7 percent year-on-year increase.

“We are quite confident in achieving this year’s target, given that investment realization reached Rp1,434 trillion by September,” he noted.

All investment data, Todotua said, comes directly from businesses reporting through the OSS system, which functions not only as a licensing platform but also as a monitoring and recording tool for national investment.

The number of registered Business Identification Numbers (NIBs) has also grown to 14 million, up from 10 million last year — signaling the rise of new entrepreneurs and small businesses contributing to the economy.

 “In just one year, we’ve added around 3–4 million new business entities. NIBs are the lifeblood of all business activities in Indonesia,” he said.

Each registered business is required to report its annual investment development, forming the basis of the government’s national investment big data system.

“Even a small barber who adds one new chair is counted as an increase in investment,” he explained.

Beyond numbers, Todotua stressed that investment realization reflects real economic growth and job creation. BKPM data shows that new investments created nearly 2 million new jobs in the first nine months of 2025.

“A total of 1,956,346 new workers were added, based on reports from businesses,” he stated.

He reaffirmed that the Rp13,000 trillion target is not just aspirational but a concrete working directive for all levels of the investment ministry.

“In 2024, Bappenas set a target of Rp1,650 trillion, and we reached Rp1,700 trillion. This year’s Rp1,905 trillion target is also within reach,” he concluded.

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