Minister Rosan: The Investment Challenges Of 2025 Will Arise From External Factors

ANTARA/HO-Kementerian Investasi

Minister Rosan: The Investment Challenges Of 2025 Will Arise From External Factors

Monday, 02 Dec 2024

The Minister of Investment and Head of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani, has indicated that the investment challenges for the year 2025 will primarily stem from external factors.

"The challenges we face next year will certainly be beyond our control. For instance, the escalating geopolitical tensions and geo-economic issues," he stated during a doorstop interview following the 2024 Annual Meeting of Bank Indonesia (PTBI) at the BI Building in Jakarta, as reported on Saturday.

Simultaneously, he expressed confidence that geopolitical and geo-economic dynamics, such as the tensions between the United States and China, present significant opportunities for both nations to relocate factories to regions that are generally more stable.

"For this reason, we must proactively engage with these parties. In the past, several years ago, during times of heightened tension, Indonesia was not the largest beneficiary among ASEAN countries. We ranked only fourth or fifth in terms of global factory relocations," Rosan remarked.

For 2025, BKPM aims to attract approximately IDR 1,950 trillion in investments from both foreign and domestic sources, an increase from the IDR 1,650 trillion target set for 2024. Furthermore, the target for 2026 is projected to exceed IDR 2,200 trillion.

He noted that measures have been prepared, encompassing both policy and regulatory aspects, to enhance investment targets.

Rosan also assessed that Donald Trump, newly elected as President of the United States, may potentially reintroduce protectionist policies similar to those during his first term. Given the economic team Trump has assembled, there is a considerable likelihood that protectionism will be reinstated.