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Foreign Investment in Indonesia Shifts From Funding to Long-Term Partnership Model

President of the Republic of Indonesia Prabowo Subianto emphasized that the government remains open to investment from both the private sector and foreign investment in Indonesia. Prabowo assured that the Indonesian government will provide legal certainty and enforce the law fairly and without discrimination. Moreover, government policy support in promoting nickel downstreaming based on a green economy has increasingly attracted foreign investor interest.

The government’s paradigm in viewing foreign investment has begun to shift. Previously focused on financing needs, investment is now seen as a strategic partnership to accelerate economic transformation.

These efforts are considered an important foundation for transforming Indonesia’s economic structure, from an exporter of raw materials into a sustainable hub for high value added industries.

Foreign Investment in Indonesia Receives Full Support from the President

Prabowo’s speech demonstrated Indonesia’s strong determination to attract investments that deliver benefits for public welfare, environmental sustainability, and economic gains.

Deputy Speaker of the People’s Consultative Assembly (MPR RI) from the National Mandate Party (PAN) faction Eddy Soeparno stated, “In his speech, President Prabowo emphasized that a country that upholds the rule of law is a country that will become a credible investment destination. This means President Prabowo underlined that investment must make a real contribution to public welfare,” Eddy stressed.

According to the PAN deputy chairman, President Prabowo’s speech also brought fresh optimism for investors to invest in Indonesia.
“President Prabowo guarantees that the law will be enforced without compromise against corruption and illegal practices across various economic sectors. This commitment was appropriately delivered at the World Economic Forum in Davos, where global stakeholders and investors from various sectors are present,” he said.

Legal Certainty for Foreign Investment in Indonesia

On the other hand, Eddy emphasized the importance of relevant institutions and ministries carrying out President Prabowo’s directives to provide legal certainty for investors who plan to invest in Indonesia.

“Including what we have conveyed in various forums is the need for policies and regulations that are consistent, coherent, and do not change suddenly in ways that disrupt the investment climate in Indonesia,” he said.

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The University of Indonesia political science doctorate added that as an MPR leader and a member of the House of Representatives, he continues to encourage investment inflows, particularly in the renewable energy sector.

“We continue to push for the passage of the New and Renewable Energy Bill, the Oil and Gas Law, the Electricity Law, as well as the acceleration of discussions on the Climate Change Management Bill as efforts to provide legal certainty for investors, especially in renewable energy,” he concluded.

Green Economy Attracts Foreign Investment Interest in Indonesia

Government policies to promote nickel downstreaming based on a green economy have increasingly attracted foreign investors. Chairman of the Supervisory Board of the Indonesian Business Council (IBC) Arsjad Rasjid assessed that the success of this agenda depends heavily on Indonesia’s ability to build an investment ecosystem that aligns government policies, industry needs, and sustainability commitments.

According to Arsjad, the fundamental questions from foreign investors are not only about the availability of natural resources, but also about Indonesia’s capacity to manage investments over the long term, including technological readiness, human resources, and policy certainty.

“The question always comes back to our ability to support investment,” he said at the Indonesia Economic Summit (IES) 2026 on the second day at the Shangri-La Hotel, Jakarta, Wednesday (4/2/2026).

In the context of nickel, the government is promoting downstreaming through the development of smelters, electric vehicle battery industries, and the new and renewable energy supply chain. This policy also positions nickel as a strategic commodity in the transition toward a low carbon economy.

Downstreaming will not be optimal without large scale investment and technological upgrades. According to him, the transformation of the mining industry requires capital for new machinery that is more efficient and environmentally friendly.

“We need a lot of capital for investment. Not only for production, but also for technology modernization to improve competitiveness,” he explained.

Therefore, he also stressed the importance of developing national capacity, both in terms of workforce and innovation. Without mastery of technology and capable human resources, Indonesia risks becoming merely a production site rather than a center of value creation.

With the world’s largest nickel reserves and increasingly clear policy direction, he is optimistic that Indonesia has a strong opportunity to become a key player in the global green industry supply chain. However, this opportunity can only be realized if current decisions are consistent, measurable, and supportive of long term transformation.

Need a Reliable Partner?

For foreign companies and investors looking to enter Indonesia, understanding the regulatory landscape is just as important as spotting opportunities. Investment rules, licensing, tax structures, and immigration requirements can quickly become complex if not handled properly. This is where the right local support matters.

Bizindo helps foreign investors navigate foreign investment in Indonesia with practical, end to end assistance. From company establishment and regulatory compliance to business visas, immigration services, and ongoing corporate support, Bizindo works as a long term partner, not just a service provider. The focus is simple. Make market entry smoother, reduce compliance risks, and help investors focus on growing their business in Indonesia with confidence.