President Prabowo Supports Increased Investment to Reach Rp3,414 trillion by 2029

Minister of Investment and Downstream Industry/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani delivers a press statement at the Merdeka Palace, on Tuesday (02/04). (Photo by: BPMI of Presidential Secretariat)

President Prabowo Subianto received Minister of Investment and Downstream Industry/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani at the Merdeka Palace, Jakarta, on Tuesday (02/04).

In this meeting, President Prabowo was handed a report on the 2024 investment achievements and investment growth targets until 2029.

According to Rosan, the 2024 investment realization exceeded the pre-set target. In fact, he added, the investment also contributed significantly to job creation.

“There were 2,456,130 people absorbed into the labor force or an increase of 34.7 percent compared to the previous year,” Rosan said.

The biggest portion of investment in 2024 was outside Java Island with 52.2 percent or Rp895.4 trillion. Meanwhile, investment in Java Island amounted to 47.8 percent or Rp818.8 trillion. Based on the origin of capital, foreign investment (PMA) was slightly higher than domestic investment (PMDN), with Rp900.2 trillion (52.5 percent) and Rp814 trillion (47.5 percent) respectively.

Rosan further explained that the five provinces with the highest investment realization throughout 2024 are West Java (14.7 percent), Jakarta (14.1 percent), East Java (8.6 percent), Central Sulawesi (8.2 percent), and Banten (6.2 percent). Meanwhile, the countries with the highest investment in Indonesia are Singapore (US$20.1 billion), Hong Kong (US$8.2 billion), China (US$8.1 billion), Malaysia (US$4.2 billion), and the United States (US$3.7 billion).

Rosan also reported that in 2024, investment from the downstream sector reached Rp407.8 trillion, or around 23.8 percent of the total national investment. Such contributions are not only in the mineral sector but also in the forestry sector, at Rp64 trillion, the palm oil and paper industry, at Rp67.1 trillion, petrochemical oil and gas, at Rp23.1 trillion, and EV batteries, at Rp8.4 trillion.

Furthermore, Rosan pointed out that the Government has also set an investment target for the next five years. Based on the National Development Planning Agency (Bappenas) data, the investment target in 2025 is Rp1,905 trillion, in 2026 Rp2,175 trillion, and in 2027 Rp2,567 trillion.

“Our economic growth in 2028 is expected to be 7.7 percent with an estimated investment target of Rp2,969 trillion, and in 2029 it will be 8 percent in line with the Government’s target with an estimated investment target of Rp3,414 trillion,” Rosan said.

On the occasion, Rosan also shared the results of his involvement at the World Economic Forum in Davos, Switzerland. According to the Minister, President Prabowo welcomed the report and expressed his full support for efforts to increase national investment.

“Mr. President fully supports it because investment contributes significantly to Indonesia’s economic growth,” Rosan said.

With strong optimism and policy support, the Government expressed hope that investment growth can be accelerated in the next five years so that the target of 8 percent economic growth can be achieved before 2029. (BPMI of Presidential Secretariat/DNS) (FI/MMB)