Jakarta. The government has established a special team to identify and evaluate regulations that hinder investment growth, a senior official announced on Wednesday.

According to Luhut Binsar Pandjaitan, chairman of the National Economic Council, the team has been tasked with reviewing existing regulations and will present its recommendations to President Prabowo Subianto within a week.

"In light of global economic dynamics, we have set up a special team to evaluate regulations that impede investments,” Luhut told Antara news agency in Jakarta. He noted that several investment-related policies are considered unfavorable to investors and should be abolished or revised, although he did not specify which ones.

The team is set to begin its work immediately, with a one-week deadline to compile its findings and propose solutions aimed at improving Indonesia’s economic climate.

The initiative follows a meeting between Luhut and Chief Economic Minister Airlangga Hartarto earlier in the day, during which they discussed strategies to enhance Indonesia’s investment climate and achieve the government’s ambitious 8 percent economic growth target in the coming years.

Luhut acknowledged that the target is challenging but expressed confidence that a combination of strategic measures, including the revitalization of labor-intensive industries, acceleration of investment flows, and expansion of digital infrastructure, will help realize President Prabowo’s economic vision.

Government data show that Indonesia attracted Rp 1,714.2 trillion ($105 billion) in investment last year, with a significant portion coming from international investors. Foreign direct investments (FDI) accounted for 52.5 percent of the total.

This achievement represents 104 percent of the 2024 investment target of Rp 1,650 trillion, set by the previous administration of President Joko Widodo. Investment inflows last year also recorded a 20.8 percent increase from 2023.

Singapore remained Indonesia’s largest foreign investor, contributing $20.1 billion in 2024. Hong Kong followed as the second-largest FDI source with $8.2 billion, while China ranked third with $8.1 billion. Malaysia’s FDI inflows reached $4.2 billion, while the United States ranked fifth with a total investment of $3.7 billion.