Jakarta, Indonesia Sentinel — Indonesia has set an ambitious investment target of IDR 13,032 trillion ($815 billion) for the 2025-2029 period, aiming to boost economic growth to 8%. The government has identified downstream industries and renewable energy as key sectors to achieve this goal.
Minister of Investment and Downstreaming, Rosan Roeslani, announced the investment target during the Economic Insight 2025 event in Jakarta on Friday, March 14, 2025. The government aims to secure IDR 1,905 trillion ($119 billion) in investments in 2025 alone.
Key Investment Sectors
Roeslani emphasized that downstream processing and renewable energy will be pivotal in meeting the government’s investment targets. Downstream industries, including mineral, agricultural, fisheries, and plantation processing, are expected to contribute 23-24% of the total investment through domestic investment (PMDN) and foreign direct investment (FDI).
“To create greater added value for the national economy, we are expanding the scope of downstream processing beyond minerals to include agriculture, fisheries, and plantations,” Roeslani said.
Indonesia is also reinforcing its commitment to sustainable growth by prioritizing investments in renewable energy. The country has set a target of achieving net-zero emissions by 2060. However, it currently utilizes only 14.43 gigawatts (GW) of renewable energy, a fraction of its estimated 3,700 GW potential.
To address this gap, the government is pushing for greater investment in solar, hydro, and geothermal energy.
“Indonesia has the world’s largest geothermal reserves, particularly in Java and Sumatra. This will be one of our key development priorities,” Roeslani added.
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The Role of Danantara
As CEO of Indonesia’s newly established sovereign wealth fund, Danantara Investment Authority, Roeslani highlighted its crucial role in attracting investors. The fund, authorized by President Prabowo Subianto, aims to provide greater investment certainty and encourage both domestic and foreign investors to participate in Indonesia’s growth.
“Danantara is not just about investing alone. We are inviting both local and foreign investors to invest together. With government involvement, we can enhance investor confidence in Indonesia,” Roeslani stated.
The Indonesian government’s investment strategy aligns with its broader economic agenda of industrial diversification and green energy transition, making the country an increasingly attractive destination for global investors.
(Becky)
