Indonesia Eyes USD 618B Downstream Investment, 3M Jobs

RRI.CO.ID, Jakarta – The Indonesian government will direct foreign direct investment into downstream sectors that add value to the country's economy. Incoming investment must also strengthen domestic industries, supply chains, and job creation.

“We are not only focused on how much investment comes in, but also on its impact on job creation and the supply chain ecosystem in Indonesia,” Deputy Minister of Investment and Downstreaming/Deputy Head of Investment Coordinating Board (BKPM), Todotua Pasaribu, said in Jakarta, Sunday, September 6, 2026.

Todotua said his ministry has prepared three strategic steps to attract direct investment into downstream sectors: planning, execution, and incentives.

On the planning side, the ministry/BKPM has issued the Strategic Downstream Investment Roadmap for 2022 and 2023. The roadmap details downstreaming for 28 commodities across eight key sectors.

“The total potential investment value reaches USD 618.1 billion. In addition, the potential for job creation is up to 3 million new jobs,” Todotua noted.

The roadmap also comprehensively maps regions across Indonesia according to their commodity strengths, alongside the natural resource potential of each area.

On execution, Todotua emphasized that downstreaming in Indonesia must be supported by certainty and ease of doing business. Therefore, the business climate must remain conducive, with risk-based licensing and streamlined permit processes.

On incentives, the government offers various fiscal measures such as tax allowances, tax holidays, masterlists, and super tax deductions. The super tax deduction is specifically designed to address challenges in applied technology transfer and workforce capacity development.

Todotua stressed that incentives are crucial because technology is a key factor in advancing downstream industries. “Investment coming into Indonesia needs to be directed,” he said.

“Not only toward building production facilities, but also toward bringing technology transfer, research and innovation, and mastery of more complex production processes.”

He added that the success of these three strategies is evident in downstream investment realization during the first half of 2026, which reached IDR 300.1 trillion (USD 17.01 billion), increase of 6.9 percent compared to the same period last year.

Downstream investment accounted for about 29.7 percent of total national investment realization. It also contributed positively to more equitable economic development across Indonesia.

“Approximately 75.7 percent of realized investment, or IDR 227.3 trillion, came from projects outside Java,” Todotua said. Balanced investment is expected to drive more inclusive economic growth. (Gusti Panji)