Indonesia and other Association of Southeast Asian Nations (ASEAN) members are racing to secure foreign capital as governments bank on regulatory reforms to attract investment, according to Investment Minister Rosan Roeslani. Speaking in Jakarta on Wednesday, Rosan said a country’s appeal hinges on how fast it can eliminate bureaucratic red tape. The administration under Prabowo Subianto aims to raise Rp 13 quadrillion ($727 billion) from investors to hit an 8% economic growth target, making a better investment climate an absolute necessity.
Indonesia Targets Rp 13 Quadrillion in Foreign Capital
To reach the ambitious economic target, Jakarta is overhauling its regulatory approach to compete with neighbors. Rosan stated at the Investor Daily Summit that the nation must continuously reform policies because neighboring countries are always improving their regulations to be faster, more accurate, measured, and structured. Jakarta’s strategy features a single platform called the “one single submission” system, which integrates all licensing procedures while utilizing artificial intelligence and blockchain technology.
Did You Know? In 2024, Microsoft unveiled a $1.7 billion artificial intelligence and cloud investment in Indonesia, while Malaysia received a larger commitment of $2.2 billion from the same American tech powerhouse.
The Investment Ministry will assume the immigration office's responsibilities for granting temporary stay permits to foreign workers. Rosan promised that the government will meet strict service level agreements to complete investment procedures by established deadlines, adding that investors will automatically receive permits if the government fails to respond within the timeframe.
Regional Rivalries and Investment Flows Across ASEAN
While ASEAN nations act as investment destinations, they serve as both rivals and sources of foreign direct investment for Jakarta. A recent report from OCBC indicated that Singapore attracted the most foreign direct investment in the region. Meanwhile, European businesses are primarily looking at expansion in Vietnam, with Indonesia ranking second according to a 2026 survey by the EU-ASEAN Business Council. Thailand has also emerged as a hub for electric vehicle investments, a sector that mineral-rich Indonesia is also targeting.
Official government figures from January to June 2026 recorded Singapore as Indonesia’s largest foreign investor at $8.8 billion, though the government has frequently noted that a major portion of these funds represents domestic money routed through Singaporean financial hubs. During the same period, Malaysian foreign direct investment reached $1 billion, making Malaysia the sixth-biggest source.
Jakarta streamlines investment procedures to boost economic growth
Why does Indonesia need Rp 13 quadrillion from investors?
The Prabowo Subianto administration needs to amass Rp 13 quadrillion ($727 billion) from investors for the national economy to grow by the targeted 8%.
How is Jakarta streamlining the investment process?
Jakarta is integrating all licensing procedures into the "one single submission" platform, using artificial intelligence and blockchain, and having the Investment Ministry take over temporary stay permit approvals from the immigration office.
What happens if the government misses an investment procedure deadline?
Investment Minister Rosan Roeslani promised that investors will automatically receive their permits if the government fails to respond to applications within the timeframe set by the service level agreement.
How will these regulatory reforms impact Indonesia’s ability to compete with neighboring tech and manufacturing hubs in the coming months?
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