Downstream Industrialization Contributes 30% of 2025 Investment, Expansion Planned
Jakarta. The government is intensifying efforts to expand industrialization and strengthen investor confidence as part of a broader push to improve Indonesia’s investment climate and support long-term economic growth, a senior official from the Investment Ministry said.
Tirta Nugraha Mursitama, Senior Advisor for Investment Equity and Partnership at the ministry, said stronger public engagement and clearer communication of government programs are essential to help authorities better understand private-sector needs while ensuring the public benefits from rising investment realization.
“Investment achievements must be communicated widely so the public can also feel the impact, including better job performance and broader welfare gains,” Tirta said on the sidelines of the Jakarta Globe Club in Jakarta on Monday.
He added that the administration is placing downstream industrialization at the center of its investment strategy, expanding beyond minerals and energy into agriculture, fisheries and marine sectors through more comprehensive and coordinated industrial policies. The government aims to align industrial development, trade policy and investment planning to attract both foreign and domestic investors, with the long-term goal of supporting stronger economic growth. Tirta expressed optimism that, with solid fundamentals and consistent execution, Indonesia could move toward an 8% growth trajectory by 2029.
Downstream activities already contributed roughly 30% of total investment realization in 2025, though investment remains concentrated in natural-resource industries such as coal and gas. Several strategic projects have entered the groundbreaking phase this year, with economic impacts expected to materialize within two to three years, he said, emphasizing that investment requires patience alongside strong fundamentals and proper implementation.
Indonesia remains open to investors from all regions. Engagement has been strengthening and could translate into larger inflows this year. The government’s approach focuses on maintaining satisfaction among existing investors while simultaneously attracting new ones through international outreach and confidence-building measures led by senior officials.
Highlighting Indonesia’s advantages over regional peers, Tirta pointed to the country’s large domestic market, abundant natural resources and long-term growth prospects, alongside regulatory streamlining and continued development of the Online Single Submission licensing system that enables investors to process permits remotely while improving coordination across ministries.
“Indonesia is a big country with abundant natural resources and a very promising future. We are working seriously on streamlining licensing, deregulation and strengthening the system so investors can complete the process from anywhere,” he said.
The reforms, he added, are expected to strengthen Indonesia’s competitiveness as a destination for global capital while supporting more inclusive economic development.
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