Finance Minister Purbaya Yudhi Sadewa has stepped up efforts to remove long-standing investment bottlenecks in Indonesia, a move he says is already generating a positive response from foreign investors. The initiative is aimed at strengthening investor confidence while supporting faster and more sustainable economic growth.
The effort is being carried out through Working Group II under the Task Force for the Acceleration of Strategic Government Programs, which focuses on debottlenecking investment regulations and procedures. Although formal discussions have only taken place once so far, Purbaya said the forum has already revealed key challenges faced by businesses operating in Indonesia.
“Even though the hearings have only been held once, I can already see the kinds of problems businesses are facing,” Purbaya said at the Ministry of Finance office in Jakarta on Thursday (January 1, 2026), as quoted by Liputan6.
He added that meetings will be held weekly starting next week to speed up problem identification and policy fixes.
Purbaya noted that foreign investors are increasingly optimistic about Indonesia’s investment prospects. This includes both potential investors and companies that already have investments in the country. According to him, feedback and complaints are now coming directly from overseas, particularly from Singapore and other countries where investors are monitoring regulatory developments in Indonesia.
“Foreign investors are clearly watching these policies, and their optimism is becoming more visible. Many are submitting concerns, including businesses that already have investments here.” He underscored.
While acknowledging that improvements will not happen overnight, Purbaya expressed confidence that consistent reforms would gradually strengthen the investment climate. Regulations deemed to hinder business activity will be detected and revised as quickly as possible.
“I don’t expect drastic changes immediately, but the investment climate will steadily improve,” he explained.
Expanding Credit Access for Local Businesses
Purbaya also highlighted the impact of injecting more than USD 12.9 billion—into the banking sector to improve liquidity and expand credit access for domestic businesses. He said limited liquidity had previously prevented banks from extending loans, even to companies with solid business fundamentals.
“There were textile companies that couldn’t get bank loans, not because they weren’t viable, but because banking liquidity was insufficient at the time,” he said.
With improved liquidity and government-supported financing schemes now in place, he expects lending conditions to improve significantly.
Pushing for 6% Growth in 2026
Looking ahead, Purbaya said he is determined to push Indonesia’s economic growth to 6% in 2026, after full-year growthin 2025 is estimated at around 5.2% supported by stronger performance toward the end of the year.
Key strategies include accelerating government spending early in the year, strengthening policy coordination with Bank Indonesia, and continuing to revise regulations that hinder investment. With tighter fiscal and monetary policy synchronization, Purbaya believes economic growth can exceed the 5.4% assumption set in the 2026 state budget.
“I am increasingly confident that 6% growth is achievable,” he stressed, “and the probability is becoming much stronger as coordination with the central bank improves.”
Source: Liputan6
Photo Credit: Aldhi Chandra via inews.id
