Investment Target of Rp1,905 Trillion Will Be Difficult to Achieve

JAKARTA – Minister of Investment/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani said that the 2025 budget ceiling of the Ministry of Investment/BKPM has decreased to IDR 681 billion when compared to the 2024 budget ceiling of IDR 1.22 trillion.

Rosan said the decline was not in line with the investment target imposed in 2025 of Rp1,905 trillion. In fact, the target has increased when compared to the 2024 investment target of Rp1,650 trillion.

According to him, with the reduction in the budget ceiling of the Ministry of Investment/BKPM in 2025, the investment target that has increased next year is threatened with not being able to achieve its target.

“Of course, this will also result in the failure to achieve economic growth due to low investment realization because based on the initial draft of the government’s 2025 work plan, the investment realization target of 1.905 trillion will be very difficult to achieve,” said Rosan in a Working Meeting (Raker) with Commission VI of the Indonesian House of Representatives, Tuesday (3/9/2024).

In addition, there are at least several consequences of the decline in the budget ceiling of the Ministry of Investment/BKPM in addition to the unattained investment target. For example, limited funding for activities to increase planning consolidation, downstreaming, and investment promotion.

“This also affects our 9 IPCs abroad, this will be ineffective and inefficient, and we can revise the IPCs outside this country,” he continued.

Then the limited creation of jobs because the realization of investment next year has decreased, so that it can have a further impact on national economic growth. Given that investment is a component in creating economic growth.

“This will certainly have an impact on job creation and a decrease in services to business actors and others,” said Rosan.

On that occasion, Rosan explained the Ministry of Investment/BKPM’s budget proposal for 2025 itself at Rp1.57 trillion. However, the budget ceiling set for 2025 is even less than 50%, or Rp681 billion.

Furthermore, through the budget that has decreased, Rosan is also worried about the decline in services to business actors. Because it takes money to

“If we look at the 2025 budget ceiling, we can only carry out activities like routine activities, such as salary expenditure, office operational expenditure, while to achieve the target of this investment realization, financing for echelon I is not running effectively,” he concluded.

(fch)