Jakarta. Indonesia is doubling down on efforts to position ASEAN as a leading global investment destination, with active participation in the ASEAN Investment Area (AIA) Council held in Kuala Lumpur from September 22 to 26.

Investment Minister Rosan Roeslani highlighted the need to maintain ASEAN’s competitiveness as a global investment hub. “Indonesia strongly supports ASEAN’s role as an investment driver, while balancing national interests with regional integration to stay globally competitive,” Rosan said on Sunday.

Deputy Minister for Investment Cooperation Tirta Nugraha Mursitama pointed out the continued support of UNESCAP, UNCTAD, the ASEAN Secretariat, ASEAN Chambers of Commerce and Industry (CCI), and the Economic Research Institute for ASEAN and East Asia (ERIA) in advancing regional investment initiatives.

One of the key discussions was the ASEAN Regional Investment Promotion Action Plan (RIPAP), developed jointly with UNESCAP, ASEAN CCI, and the ASEAN Secretariat. RIPAP is designed to attract more foreign investment by spotlighting priority sectors across the region. Tirta said Indonesia fully supports the plan, noting its alignment with ASEAN’s role in global supply chains as reflected in the upcoming ASEAN Investment Report (AIR) 2025.

Established in 1998, the AIA has been a milestone in liberalizing regional investment by removing barriers and expanding market access. “For Indonesia, this initiative strengthens our FDI appeal and strategic position in the region,” Tirta added.

The Council also unveiled highlights of the AIR 2025, which underscored ASEAN’s role in global supply chains. The region drew $226 billion (Rp 3,770 trillion) in foreign direct investment (FDI) in 2024, despite global headwinds. The report emphasized the importance of comprehensive supply chain frameworks and stronger strategic partnerships to address policy gaps, infrastructure challenges, labor shortages, and rising protectionism.

Indonesia itself recorded a 13 percent increase in FDI to $24 billion (Rp 400 trillion)  in 2024, driven largely by investments in electric vehicle manufacturing, mining, trade, and healthcare.

“This performance reflects the government’s flagship programs, including downstream industry policies, ease-of-doing-business reforms, connectivity development, and sustainability practices,” Tirta said.

The forum also touched on the global minimum tax (GMT). Indonesia urged ASEAN to shift its investment promotion strategies from profit-based incentives to activity-based ones, such as labor subsidies, R&D credits, and stronger governance and non-tax infrastructure.

“This step is vital to safeguard competitiveness and cement ASEAN’s position as a global investment hub,” Tirta said.

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