Jakarta, Indonesia Sentinel — Indonesia need an additional $45 billion (approximately Rp735 trilion) in investment to achieve its ambitious goal of 8% economic growth, according to Investment and Downstreaming Minister Rosan Roeslani.
Speaking at the DBS Asian Insights Conference in Jakarta on Wednesday, Rosan said that while 5% growth is considered “very, very good” by global standards, Indonesia has the potential to reach higher.
“Yes, many people ask, ‘Can we really hit 8% growth?’” Rosan said. “But if you look at the numbers, we believe we can.”
Indonesia’s current gross domestic product (GDP) stands at approximately $1.5 trillion. According to Rosan, every 1% increase in economic growth, Indonesia requires about $15 billion in new investment.
“So, to grow by another 3 percentage points, we need $45 billion in additional investment, and that has to come from investment,” he emphasized.
Rosan, who also serves as CEO of the state-owned investment firm Danantara, expressed confidence in Indonesia’s ability to meet the target. He pointed to Southeast Asia’s total foreign direct investment (FDI) inflows of around $230 billion to $240 billion annually, noting that Indonesia currently captures just 11% to 12% of that total, despite being ASEAN’s largest economy and most populous country.
“Indonesia contributes nearly 40% of the region’s GDP and 41% of its population,” he said. “So our potential to increase investment is still huge.”
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Over the past decade, total investment in Indonesia both domestic and foreign reached Rp9,100 trillion (about $557 billion). However, President Prabowo Subianto has set a more aggressive target with over Rp13,000 trillion (roughly $796 billion) in new investment over the next five years.
While acknowledging the sharp increase, Rosan said he believes it is achievable if the government adopts the right mix of policies and regulations.
“If we come up with a good policy, a good regulation, I think we can achieve that number,” he said.
He added that the presence of Danantara has helped boost investor confidence by co-financing projects and signaling stronger government support. “Many foreign investors feel more assured when they see Danantara’s involvement. It gives them more confidence to invest in Indonesia,” Rosan said.
(Raidi/Agung)
