Antara News·Indonesia·Monday, November 9, 2026 at 12:21 PM UTC

Indonesia pushes to accelerate construction phase for investors

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Shofi Ayudiana, Yashinta Difa

Medan, N. Sumatra (ANTARA) - The Indonesian government is moving to shorten the country's multi-year investment cycle, aiming to accelerate project construction timelines and streamline bureaucratic hurdles for both domestic and international investors.

Speaking in Medan on Monday, Deputy Minister of Investment and Downstreaming Todotua Pasaribu pointed out that the current investment realization process in Indonesia still spans approximately 4.5 to 5 years from conception to completion.

Todotua attributed the lengthy timeline to complex licensing procedures and fragmented institutional coordination. Under current practices, investors must complete exhaustive licensing stages before breaking ground.

"We want the cycle to consist primarily of the construction phase itself. This way, when business players enter, they have certainty regarding their timeline," he noted.

He compared the investment process in Indonesia to that of Vietnam, where, according to him, investors can begin construction within one to two weeks of securing land and the necessary permits.

Todotua stated that the government needs to improve governance, systems, and coordination among the central government, local governments, and various ministries/agencies to shorten the investment process.

Despite the push for speed, the deputy minister stressed that administrative acceleration will not compromise statutory compliance.

Essential obligations—such as environmental impact assessments, conformity with spatial utilization plans (KKPR), and community social impact considerations—remain strictly mandatory.

As part of efforts to overcome investment barriers, the Investment and Downstreaming Ministry/the Investment Coordinating Board (BKPM) has established investment desks.

Following initial rollouts in Batam (Riau Islands) and Denpasar (Bali), a new facility was formally inaugurated in Medan (North Sumatra) on Monday, with upcoming expansions scheduled for Semarang (Central Java), Balikpapan (East Kalimantan), and Makassar (South Sulawesi).

Staffed by BKPM specialists, these investment desks function as centralized coordination channels between investors and government institutions—mapping regional investment potential and resolving bottlenecks on the ground.

The push for structural reform comes amid solid financial growth for Indonesia's investment sector.

According to official BKPM figures, national investment realization from January to September 2026 reached Rp1,539.2 trillion (approximately US$85.51 billion), marking a 7.3 percent increase compared to the same period last year.

The nine-month tally is balanced between domestic direct investment at Rp761.4 trillion (US$42.30 billion) and foreign direct investment totaling Rp777.8 trillion (US$43.21 billion), collectively generating an estimated 2.19 million jobs nationwide.

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