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Indonesia streamlines licensing to speed up investment realization
ID🏛️ PoliticsCenter8/17/2026

Indonesia streamlines licensing to speed up investment realization

Indonesia is implementing reforms to streamline its licensing processes to accelerate investment realization and boost economic growth. Deputy Minister of Investment and Downstreaming Todotua Pasaribu highlighted that the current system required businesses to wait for all permits before starting operations, leading to an average investment cycle of 4.5 to 5 years. To address this, the government introduced a 'deemed approval' scheme under Government Regulation No. 28 of 2025, which allows construction and development activities to proceed while licenses are being processed. This policy applies to 287 out of 560 business activity types and aims to reduce bottlenecks, especially in fast-growing sectors. The reforms align with Indonesia's goal of attracting Rp13,000 trillion ($728.4 billion) in investments by 2029 to achieve 8% annual economic growth. Investment contributed 30% to GDP growth in recent years, exceeding the 2025 target by 3%, and the government aims to create 2.5 million new jobs by 2029.

Indonesian economic growth hit 5.29 percent in the first half of 2026, testing the sustainability of recent fiscal expansion, according to analysis published by The Jakarta Post. This growth rate marks a notable acceleration over previous periods, raising questions about whether current policies can sustain such momentum without compromising long-term stability. The government has responded by setting ambitious targets for the upcoming fiscal year, including a projected 6 percent economic growth for 2027, alongside plans to reduce the budget deficit and enhance social protections. The Ministry of Energy and Mineral Resources (ESDM) confirmed that non-tax state revenue (PNBP) from the mineral, coal, oil, and gas sectors has already surpassed 70.69 percent of its full-year 2026 target, reaching Rp96.26 trillion ($6.1 billion) as of July. ESDM Minister Bahlil Lahadalia assured that PNBP would exceed 100 percent of the target by year-end, emphasizing the ministry’s focus on strengthening state revenue lines. Finance Minister Purbaya Yudhi Sadewa echoed this sentiment, urging the ESDM Ministry to push PNBP realization beyond the 100 percent threshold. Tax revenue growth stood at 23 percent year-on-year, while total state revenue reached 46.3 percent of the 2026 APBN target, reflecting a 21.4 percent increase compared to the same period in 2025. The 2027 State Budget Draft (RAPBN) outlines a strategic shift towards self-reliance in key sectors, particularly food and energy. President Prabowo Subianto outlined a budget of Rp4,097.2 trillion ($229.24 billion) for state spending and a revenue target of Rp3,426 trillion ($191.69 billion). The economic growth target for 2027 is set at 5.8–6.5 percent, a rise from the 5.4 percent target in 2026. The budget emphasizes initiatives aimed at enhancing food security and energy independence, with allocations of Rp195.3 trillion for food security, up 2.3 percent from the 2026 forecast, and investments in expanding rice cultivation, irrigation systems, and rural infrastructure. Energy self-reliance is another central pillar of the 2027 budget, with Prabowo highlighting the need to reduce dependency on fossil fuels and imported fuel oil. He proposed accelerating the development of solar power projects, aiming for 100 gigawatts (GW) of solar capacity by 2027. This initiative is expected to save at least Rp73.9 trillion annually through reduced electricity production costs. For 2026 alone, the government targets 30 GW of solar development and the decommissioning of 13 GW of diesel-powered plants. Additionally, the government is advancing plans for a national electric vehicle (EV) ecosystem, including incentives for EV adoption, expansion of charging infrastructure, and strengthening the battery supply chain. To support these ambitious goals, the government has also adjusted its fiscal approach, aiming to reduce the budget deficit to 2.40 percent of GDP in 2027, down from the 2.68 percent target in 2026. This adjustment comes alongside a commitment to maintaining low inflation at around 2.5 percent and managing the rupiah exchange rate at Rp17,500 per US dollar. The government also expects the Indonesian Crude Price (ICP) to stabilize at $75 per barrel, with oil production targeted at 610,000 barrels per day and gas output at 954,000 barrels of oil equivalent per day. Investment realization in 2025 totaled Rp1,931 trillion ($105 billion), generating over 2.7 million jobs, demonstrating the resilience of Indonesia’s economy amidst global uncertainties. By mid-2026, investment had reached Rp1,010 trillion ($54.9 billion), creating more than 1.4 million jobs. These figures reflect the government’s success in attracting foreign capital and fostering domestic investment, contributing significantly to economic growth. To further expedite investment processes, the Ministry of Investment and Downstreaming introduced a deemed approval scheme, streamlining licensing procedures and enabling faster project implementation. This reform is part of broader efforts to secure Rp13,000 trillion ($728.4 billion) in investment by 2029, aligning with the goal of achieving 8 percent economic growth. Tourism is also emerging as a key driver of economic diversification, with the government launching the “Go Beyond Ordinary” campaign to attract more Australian visitors beyond traditional hubs like Bali and Jakarta. As of June 2026, Australian tourist arrivals reached 864,750, marking a 6.29 percent increase from the previous year. The campaign includes promotional events in Sydney and Melbourne, aiming to promote diverse travel experiences and distribute tourism benefits across local communities. With these multifaceted strategies, the Indonesian government is positioning itself for sustained economic growth and enhanced national resilience.

How this report was made. Objective News wrote this report from 3 source articles, using AI-assisted synthesis under our methodology. It is our own text, not a copy of any single outlet. Read our methodology.

Responsible editor: Matej BašaSpotted an error? Report it

11 reports

Antara News logoAntara NewsState / PublicCenterFactual 95Objective 908/17/2026
RI leverages creative economy to drive 6 percent growth target by 2027

Indonesia's government is focusing on developing its creative economy as a driver for achieving a 6% GDP growth target by 2027. The initiative is guided by the 2026–2045 Creative Economy Master Plan (Rindekraf), established through Presidential Regulation No. 37/2026. This plan aims to transform creativity, intellectual property, talent, and regional resources into productive economic activities. Programs such as Creative Village Activation, Creative Hub Activation, and Creative by Indonesia are being implemented to boost the sector's contribution. These efforts align with the government's 2027 state budget goals, aiming to sustain economic momentum and enhance public welfare.

Bias read (Center): The article presents an official government initiative with no overtly biased language or selective sourcing. It reports on stated objectives and plans without apparent ideological framing.

Why factuality (95): The article provides detailed information about the Creative Economy Master Plan (Rindekraf), including official statements from the minister and specifics of the program. These details are consistent with government announcements and do not conflict with other sources. The facts are clearly present

Why objectivity (90): The article is highly objective, presenting the government's plans and goals without apparent bias. It includes direct quotes and explains the objectives of the programs without injecting personal opinion or emotional language.

The Jakarta Post logoThe Jakarta PostIndependentCenterFactual 90Objective 858/14/2026
Analysis: RI’s 5.29 percent growth tests sustainability of fiscal expansion

The article analyzes Indonesia's 5.29% economic growth rate and examines whether the country can sustain its current fiscal expansion policies. It highlights concerns about the long-term viability of these policies, suggesting potential risks such as increased public debt and inflationary pressures. The piece emphasizes the need for careful management of fiscal stimulus to ensure economic stability. While it acknowledges the benefits of growth, it raises questions about the balance between expansion and sustainable development.

Bias read (Center): The article presents a balanced view by discussing both the positive aspects of economic growth and the challenges posed by fiscal expansion. It does not overtly favor one political ideology over another but rather focuses on economic indicators and expert analysis. The tone remains objective, with措

Why factuality (90): This article accurately reports on the 5.29% GDP growth and discusses the implications for fiscal sustainability. The figures are standard in economic analysis and align with cross-source consensus. There is no significant deviation from commonly reported economic indicators.

Why objectivity (85): The article maintains a neutral tone, presenting the growth figure and its implications without overt bias. However, the phrasing 'tests sustainability' introduces a slightly critical perspective, which may lean toward caution rather than neutrality.

Antara News logoAntara NewsState / PublicCenterFactual 90Objective 858/11/2026
Indonesian energy revenues will surpass target, minister says

Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia stated that non-tax state revenue (PNBP) from the mineral, coal, oil, and gas sectors will exceed the annual target of Rp136.18 trillion by the end of 2026. As of July, PNBP had already reached Rp96.26 trillion, or 70.69% of the target. Lahadalia emphasized collaboration with Finance Minister Purbaya Yudhi Sadewa, who encouraged further revenue growth. Tax revenue growth stood at 23% year-on-year, while overall state revenue reached 46.3% of the 2026 APBN target, driven mainly by tax and non-tax income.

Bias read (Center): The article presents factual updates on revenue targets and inter-ministerial cooperation without overtly favoring any political ideology. It reports on economic indicators and government coordination without taking a clear ideological stance, maintaining a balanced tone.

Why factuality (90): This article provides detailed figures and quotes from government officials regarding energy revenues exceeding targets. These details align with the cross-source consensus and are supported by official statements from the ESDM and Finance Ministries. The data presented is consistent with standard r

Why objectivity (85): The article maintains an objective tone by presenting statements from both ministers without taking sides. It reports facts and quotes without injecting personal opinions or emotional language, maintaining a balanced perspective.

Antara News logoAntara NewsState / PublicCenterFactual 85Objective 908/15/2026
BMKS aims to give Indonesia its own reference price

Indonesia's Mineral Industry Agency (BIM) head, Brian Yuliarto, announced plans for the Mineral and Strategic Commodities Exchange (BMKS), which is scheduled to begin operations in early 2027. The exchange aims to establish Indonesia's own reference prices for minerals and strategic commodities, reducing reliance on overseas markets. The initiative follows presidential directives from President Prabowo Subianto to develop an organized trading system for these goods. A task force involving multiple government agencies and industry stakeholders is forming to coordinate the project, focusing on regulation, governance, technology, and cross-sector collaboration. Yuliarto emphasized the importance of standardized quality, traceability, and downstream industrialization through the exchange, which is expected to enhance economic resilience and national security.

Bias read (Center): The article presents the initiative as a government-led effort with clear objectives and stakeholder involvement, without overtly praising or criticizing the policy. While the topic is politically charged due to its implications for economic sovereignty and international trade, the framing remains客观

Why factuality (85): The article accurately reports on the planned establishment of the BMKS exchange in 2027, citing Brian Yuliarto from BIM and referencing the involvement of multiple government agencies. It aligns closely with the cross-source consensus found in other Antara News articles covering the same topic.

Why objectivity (90): The article maintains a neutral tone, presenting facts without overt bias or emotional language. It quotes officials directly and avoids taking a stance beyond reporting the stated goals and structure of the initiative.

Tempo (English) logoTempo (English)IndependentCenterFactual 85Objective 908/10/2026
Indonesia's July Consumer Confidence Index Stays Optimistic

The article reports that Indonesia's July Consumer Confidence Index remained optimistic, indicating that consumers continue to maintain a positive outlook despite economic uncertainties. The report highlights factors such as stable employment and controlled inflation as contributing to this optimism. While the index did not show significant growth compared to previous months, it maintained a level consistent with recent trends. The data suggests that households remain cautiously confident about their financial situations and future spending plans.

Bias read (Center): The article presents the Consumer Confidence Index as a neutral economic indicator, focusing on factual data rather than taking a clear ideological stance. It does not emphasize any particular political agenda or frame the results in a way that favors one side over another. The tone remains balanced

Why factuality (85): The article accurately reports that Indonesia's July Consumer Confidence Index remained optimistic, aligning with the general consensus found in other sources covering the same event. It does not make exaggerated or unsupported claims, though it lacks specific numerical data or detailed methodology.

Why objectivity (90): The tone is neutral and balanced, presenting the information without evident bias or emotional language. The article avoids taking sides or injecting personal opinion, focusing on reporting the index's status as 'optimistic' without further interpretation.

Tempo (English) logoTempo (English)IndependentCenterFactual 85Objective 808/10/2026
What Indonesia Needs to Achieve 7 Percent Economic Growth

The article titled 'What Indonesia Needs to Achieve 7 Percent Economic Growth' discusses the factors and strategies necessary for Indonesia to achieve a 7% annual economic growth rate. It highlights the importance of improving infrastructure, enhancing education and workforce skills, fostering innovation, and attracting foreign investment. The piece emphasizes the need for effective governance and policy implementation to create a conducive environment for sustained economic expansion. While it outlines potential pathways for growth, the article does not provide specific data or recent performance metrics to contextualize these recommendations.

Bias read (Center): The article presents general economic development goals and strategies without overtly favoring any particular political ideology or party. It focuses on broad national priorities such as infrastructure, education, and foreign investment, which are commonly discussed across political spectrums. The

Why factuality (85): The article accurately reports on the minister's statements regarding attracting foreign film productions and their economic benefits. It references specific events and collaborations, aligning with other articles on similar topics.

Why objectivity (80): While informative, the article highlights the positive aspects of film production for the economy, which may subtly favor the idea of economic diversification through creative industries.

Antara News logoAntara NewsState / PublicCenterFactual 80Objective 928/12/2026
Indonesia streamlines licensing to speed up investment realization

Indonesia is implementing reforms to streamline its licensing processes to accelerate investment realization and boost economic growth. Deputy Minister of Investment and Downstreaming Todotua Pasaribu highlighted that the current system required businesses to wait for all permits before starting operations, leading to an average investment cycle of 4.5 to 5 years. To address this, the government introduced a 'deemed approval' scheme under Government Regulation No. 28 of 2025, which allows construction and development activities to proceed while licenses are being processed. This policy applies to 287 out of 560 business activity types and aims to reduce bottlenecks, especially in fast-growing sectors. The reforms align with Indonesia's goal of attracting Rp13,000 trillion ($728.4 billion) in investments by 2029 to achieve 8% annual economic growth. Investment contributed 30% to GDP growth in recent years, exceeding the 2025 target by 3%, and the government aims to create 2.5 million new jobs by 2029.

Bias read (Center): The article presents a factual overview of government-led reforms aimed at improving the investment environment. It includes direct quotes from an official, mentions specific policies and goals, and provides data on investment performance. There is no overtly biased language, and the tone remains un

Why factuality (80): The article provides detailed information about the licensing reforms being implemented by the Indonesian Ministry of Investment and Downstreaming. It references specific regulations and statistics, though some figures may require verification. The mention of a 2029 investment target aligns with kno

Why objectivity (92): The article maintains a neutral stance throughout, presenting facts and statements from officials without apparent bias. It focuses on the procedural aspects of the reforms rather than advocating for any particular viewpoint.

Antara News logoAntara NewsState / PublicCenterFactual 80Objective 858/15/2026
Indonesia targets more Australian tourists beyond Bali

Indonesia is launching a campaign called 'Go Beyond Ordinary' aimed at attracting more Australian tourists beyond the popular destinations of Bali and Jakarta. The initiative includes promotional events in Sydney and Melbourne, where Indonesian tourism businesses collaborate with Australian travel companies to expand tour packages and promote diverse experiences such as nature, culture, marine activities, cuisine, and wellness. Statistics show that Australia is Indonesia's second-largest source market for tourism, with over 1.7 million visitors in 2025 and additional arrivals in early 2026. The Tourism Ministry has set a target of 2.23 million Australian tourist visits for the current year, aiming to boost economic benefits for local communities through extended stays and increased spending.

Bias read (Center): The article presents a balanced overview of Indonesia's tourism strategy without overtly favoring any political ideology. It focuses on economic development and international relations, emphasizing collaboration between Indonesian and Australian entities. There is no significant ideological slant or

Why factuality (80): The article reports on former President Yudhoyono's comments following Prabowo's State of the Nation Address. It includes direct quotes and mentions the context of the address, as well as the political figures involved. The information is sourced from Antara News and appears to reflect a reasonable

Why objectivity (85): The article maintains a neutral tone, presenting Yudhoyono's optimistic assessment without overtly endorsing any political stance. It focuses on the content of the address and the reactions of a former leader, avoiding emotionally charged language or biased commentary.

Antara News logoAntara NewsState / PublicCenterFactual 80Objective 858/10/2026
Ministry opens door to investment in Indonesia's rail network

The Indonesian government is opening its national railway network to both domestic and foreign investment, emphasizing the development of logistics infrastructure to enhance economic growth. Transportation Minister Dudy Purwagandhi stated that the country is welcoming international interest, including from Russia, China, and the UK, in developing key railway corridors such as the Trans-Sumatra and Trans-Kalimantan lines. The government is prioritizing routes with strong economic potential and is working with the Ministry of National Development Planning to ensure investments align with regional development goals. While specific investment requirements remain undetermined, the state-owned railway company, PT Kereta Api Indonesia, has already shown interest in upgrading existing lines, particularly in Sumatra. President Prabowo Subianto recently directed the expansion of the national railway network, focusing on connecting major regions across Indonesia.

Bias read (Center): The article presents a balanced overview of the government's initiative to attract investment in the railway sector without overtly favoring any particular political ideology or group. It reports on the openness to both domestic and foreign investors, mentions multiple countries expressing interest,

Why factuality (80): The article outlines what Indonesia needs to achieve 7% growth, referencing factors like investment and policy reforms. While it doesn't provide current data, it aligns with common economic theories and discussions found in other articles, contributing to a general consensus on growth drivers.

Why objectivity (85): The article is framed as a discussion of necessary conditions for growth rather than a critique or endorsement of specific policies. It maintains a balanced approach by presenting requirements without taking a definitive position.

Antara News logoAntara NewsState / PublicCenterFactual 80Objective 758/10/2026
Indonesia aims to attract foreign film productions to boost economy

Indonesia's Creative Economy Minister, Teuku Riefky Harsya, highlighted the potential of international film productions to drive economic growth and investment in the creative sector. He emphasized that these projects create jobs for locals and benefit related industries such as hospitality, tourism, and logistics. The minister discussed this during a visit to the set of the co-produced French-Indonesian film 'Happy Eyes,' which is being filmed in Taman Safari Indonesia and Tanjung Lesung. The project involves both foreign and local crews, with a significant portion of the workforce being Indonesian. The government is facilitating international film productions by simplifying permit processes and supporting infrastructure needs. The film's success could promote Indonesian destinations as tourist attractions and enhance the country's reputation through cultural exchange.

Bias read (Center): The article presents information about Indonesia's efforts to attract international film productions for economic development without overtly favoring any particular political ideology. It includes perspectives from both government officials and industry representatives, providing a balanced view of

Why factuality (80): The article explains why CSIS is raising concerns despite the growth figure, referencing broader economic issues. It cites external analyses and aligns with other articles discussing economic challenges alongside growth metrics.

Why objectivity (75): The article frames the concern as a valid point, potentially giving more weight to the criticism than the growth statistic alone, which might introduce a slight bias in emphasis.

Tempo (English) logoTempo (English)IndependentProgressiveFactual 60Objective 658/11/2026
5.29 Percent Growth, In This Economy?

The article titled '5.29 Percent Growth, In This Economy?' from Tempo (English) questions the significance of Indonesia's reported economic growth rate of 5.29 percent. The piece appears to challenge the narrative around this figure, suggesting that such growth may not accurately reflect the broader economic reality, particularly in the context of ongoing challenges like inflation, inequality, and regional disparities. The article likely explores discrepancies between official economic indicators and the lived experiences of ordinary Indonesians. It may also critique the methodology used to calculate GDP growth or highlight sectors that are underperforming despite the headline number. No specific data or sources are provided within the text, leaving room for further investigation into the validity of the growth claim.

Bias read (Progressive): The article frames the economic growth figure as potentially misleading, which suggests a critical stance toward official narratives often associated with pro-growth policies favored by right-leaning governments. By questioning the relevance of the growth rate in the current economic climate, the文章傾

Why factuality (60): The article references a 5.29 percent growth figure but does not provide sufficient context or sources to verify its accuracy. It appears to be discussing economic performance within a broader narrative, but the lack of detailed information limits its factual reliability. Cross-source consensus sugg

Why objectivity (65): The phrasing 'In This Economy?' suggests a critical or questioning tone, potentially implying skepticism toward current economic conditions or government performance. While not overtly partisan, the framing may subtly favor a particular viewpoint, reducing overall objectivity.

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