Jakarta – Indonesia needs an investment of up to IDR 13,000 trillion (approximately US$ 814 billion) to achieve its ambitious target of 8% economic growth. The Ministry of Investment/Investment Coordinating Board (BKPM) emphasized that one of the top priority sectors to drive this target is the energy sector through downstream industry development (hilirisasi).
“Based on data from the National Development Planning Ministry (Bappenas), the 8% economic growth target can only be achieved if we attract new investments of around IDR 13,000 trillion, equivalent to US$ 814 billion,” said Ahmad Faisal Suralaga, Director of Strategy and Governance for Downstream Industry at the Ministry of Investment/BKPM, during the PYC International Energy Conference 2025 held at Hotel Indonesia Kempinski, Jakarta, on Saturday (August 23, 2025).
As of the first half of 2025, Indonesia’s realized investment reached IDR 942 trillion, representing 49.5% of the annual target of IDR 1,900 trillion. Out of this, the downstream industry contributed significantly, reaching IDR 280 trillion or nearly 30% of total investment.
Faisal highlighted that boosting downstream industries will generate far greater added value for Indonesia’s economy.
“These figures show that the downstream industry has become one of the most promising priority sectors in Indonesia’s future investment policy. This underlines the strategic importance of downstreaming,” he explained.
In his Asta Cita Vision, President Prabowo Subianto has set downstream industry development as a national priority to achieve energy self-sufficiency. Indonesia currently has 28 commodities with strong downstreaming potential, including coal, oil and gas, plantations, forestry, fisheries, and other natural resources.
“We also have copper and silver reserves. Beyond minerals, Indonesia is also strong in CO₂ and remains the world’s number one producer of palm oil,” he added.
According to Faisal, downstreaming will not only boost investment and exports but also create millions of new jobs.
“Based on our roadmap, downstream industry can attract around US$ 618 billion in investments, increase GDP by US$ 200 billion, boost exports by US$ 857 billion, and most importantly, create jobs for over 3 million workers,” he said.
Earlier, Deputy Minister of Investment and Downstream Industry/Deputy Head of BKPM, Todotua Pasaribu, also emphasized that Indonesia requires a total investment realization of IDR 13,528 trillion over the next five years to achieve 8% economic growth.
He stressed that this target is expected to generate 3.74 million new jobs, while highlighting three fundamental pillars to reach sustainable growth:
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Boosting investment, particularly through downstream industry development.
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Accelerating digitalization to simplify economic activities and investment realization.
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Advancing the green economy fund as a foundation for long-term sustainable growth.
“These three fundamentals will remain the core focus of the Ministry of Investment and Downstream Industry/BKPM to support Indonesia’s sustainable economic growth,” concluded Todotua.