Indrawati made the statement during a working meeting with Commission XI of the Indonesian House of Representatives in Jakarta, on Thursday, in response to the trend of slowing national investment in the first quarter of 2025.
The minister outlined several main areas of focus for deregulation, including accelerating the licensing process down to the regional government level, simplifying the import process for domestic industries, and supporting strategic investment by relaxing the domestic component level (TKDN).
In addition, the Indonesian government continues to optimize other supporting policies, such as fiscal incentives, accelerating foreign direct investment, and strengthening the role of state-owned enterprises (BUMN) through the establishment of the Danantara Indonesia Investment Management Agency.
"A quite successful deregulation in the trade sector includes the distribution of subsidized fertilizers. A total of 145 regulations have been cut, so farmers can now get fertilizer on time before planting. This also helps drive increased growth in the agricultural sector," she explained.
To achieve national economic growth above 5 percent, she emphasized the need for a significant increase in investment.
Gross fixed capital formation (GFCF), or investment growth, in the first quarter of 2025 increased only by 2.1 percent annually.
Based on data from the Investment and Downstream Ministry or the Investment Coordinating Board (BKPM), investment in the first quarter of 2025 reached Rp465.2 trillion, or grew by 15.9 percent annually.
Although this figure is higher than Rp401.5 trillion recorded in the same period last year, the growth rate is lower than 22.1 percent registered in the first quarter of 2024.
"Various policies, including the development of Special Economic Zones (KEK), are also continuously strengthened. The Directorate General of Customs and Excise is tasked with supervising and providing facilities to make regional manufacturing industries globally competitive" she stated.
Furthermore, she stressed that accelerating investment is essential for maintaining national economic growth.
Indonesia is targeting economic growth of around 4.7 to 5 percent in 2025. To achieve this growth, household consumption must grow above 5 percent, and investment must grow 4.5 to 4.7 percent.
"In fact, investment growth only reached 2.1 percent in the first quarter of 2025. This means the investment rate must be doubled," she stressed.
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Translator: Martha Herlinawati Simanjuntak
Editor: Aditya Eko Sigit Wicaksono
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