JAKARTA, RAKYAT NEWS – Minister of Investment Rosan Roeslani is optimistic that foreign investment in Indonesia will see significant growth, especially with the operational launch of Danantara. During the Economic Outlook 2025, held on February 26, 2025, Rosan highlighted the potential for Indonesia to attract more foreign capital, which is crucial for the country’s economic growth.

According to Roeslani, Indonesia should aim to capture one-third of the foreign investment flowing into ASEAN countries. Data from Statista reveals that total foreign investment in ASEAN countries reached $230 billion in 2023. However, Indonesia only received $47.34 billion, representing about 20.58% of the total, while Singapore secured a substantial $160 billion or 70% of the region’s total foreign investment.

Rosan emphasized that Indonesia, with a population of 270 million and contributing 36% of ASEAN’s economic output, has the potential to attract more investment. He believes that foreign investment in Indonesia should align with the country’s economic standing and population size. The goal is for Indonesia to receive at least 30% of the total foreign investment in ASEAN.

Despite these challenges, Roeslani expressed confidence in the government’s policies aimed at boosting foreign investment. One of the key strategies to reduce reliance on foreign funds is the operation of Danantara. This initiative is expected to raise $300 trillion from national budget efficiencies, which would provide a significant source of funding for the country.

Danantara is expected to play a crucial role in diversifying the country’s investment sources. Rosan pointed out that, with the current geopolitical and geo-economic tensions, relying solely on foreign capital is no longer sustainable. Instead, Danantara’s funding will be used for investments that align with government-set parameters and make a significant impact on the society.

For 2024, Indonesia exceeded its investment target, with a total of Rp 1,714.2 trillion in investments, surpassing the set target of Rp 1,650 trillion. The total investment in 2024 was up by 20.8% compared to the previous year. Foreign direct investment (FDI) accounted for 52.5% of the total investment, with domestic investments (PMDN) comprising the remaining 47.5%.

The industrial sector, particularly basic metal industries, saw the largest foreign investments in 2024, amounting to $13.6 billion, or 22.6% of total FDI. For domestic investments, the transportation, storage, and telecommunications sectors were the most attractive, receiving Rp 120.1 trillion or 14.8% of the total.

Rosan also shared that Singapore remained the largest investor in Indonesia in 2024, contributing $20.1 billion. Other notable investors included Hong Kong, China, Malaysia, and the United States, with investments of $8.2 billion, $8.1 billion, $4.2 billion, and $3.7 billion, respectively. This highlights Indonesia’s growing appeal to foreign investors despite global uncertainties. (Uki Ruknuddin)