Economists believe that Indonesia’s downstreaming strategy, combined with licensing reform and infrastructure development, will play a crucial role in achieving the country’s future investment targets. Executive Director of the Institute for Development of Economics and Finance (INDEF), Esther Sri Astuti, stated that Indonesia’s 2026 investment target of IDR2,041 trillion remains achievable despite global economic uncertainties. She emphasized that stronger investment performance is essential to support Indonesia’s economic growth target of 8%, with estimated investment needs reaching around IDR13,000 trillion. Indonesia’s investment realization in 2025 exceeded government targets, reaching IDR1,931.2 trillion and growing 12.7% year-on-year.

The downstreaming policy is considered a strategic driver for increasing economic value-added by processing raw materials into higher-value products before export. Economists also highlighted the importance of regulatory simplification, legal certainty, integrated licensing systems, and infrastructure connectivity to attract more domestic and foreign investors. Additional fiscal and non-fiscal incentives, including tax facilities and industrial land support, are expected to strengthen Indonesia’s investment competitiveness while encouraging job creation and long-term industrial expansion.
Source:
https://www.antaranews.com/berita/5571179/ekonom-nilai-hilirisasi-jadi-kunci-capai-target-investasi