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Due To Licensing, Government Loses IDR 1,500 Trillion Investment Commitment

Deputy Minister of Investment and Downstream/Investment Coordinating Board (BKPM) Todotua Pasaribu admitted that his party found an unrealized investment commitment value of IDR 1,500 trillion in 2024. This was caused by the complicated licensing problem. 

"This is indeed a classic problem. Every year we record investment realization, which is inputted by business actors. We found the figure in 2024 that the unrealized investment figure was around IDR 1,500 (trillion)," said Todotua in Jakarta, Thursday, July 3, 2025. 

Therefore, the government through the Ministry of Investment and Downstream/BKPM is making a breakthrough to reform the complicated bureaucracy which also aims to achieve the target of eight percent economic growth. 

"So in this revision, hopefully this will also be a breakthrough step in our taking actions in order to be able to accelerate, simplify, and provide, in particular, a context of certainty regarding business licensing," he said. 

Currently, Todotua admitted, his party is preparing a Draft Regulation of the Minister of Investment and Downstream/Head of BKPM as a replacement for BKPM Regulation Number 3, 4, and 5 of 2021 in order to build a conducive and investment-rich business climate. 

The improvement of this policy is a follow-up to Government Regulation (PP) Number 28 of 2025 concerning the Implementation of Risk-Based Business Licensing. This will be the foundation for risk-based company licensing reform by simplifying procedures for strengthening the Online Single Submission (OSS) system and increasing legal certainty. 

"Today's public consultation was held with the strategic aim of absorbing constructive input from stakeholders, both ministries/institutions, regions, then business associations, MSMEs, and Investors regarding the Draft Amendment to BKPM Regulation Number 3, 4, and 5 of 2021," explained Todotua. 

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Tag: BKPM Todotua