Coordinating Minister for Economic Affairs Airlangga Hartarto said the government continues to strengthen Indonesia’s investment appeal amid global economic uncertainty. The strategy prepared by the government includes the development of industrial downstreaming, strengthening the digital economy, and expanding access to international markets. 

He said national investment performance continues to show a positive trend. In the first quarter of 2026, investment realization reached IDR 498.79 trillion, growing 7.22% year-on-year. Labor absorption also increased to 706,569 people, up 18.93% compared to the same period the previous year. 

The government recorded that investment in the downstreaming sector continues to grow. Meanwhile, the entry of global hyperscaler companies is claimed to strengthen Indonesia’s position as a center for the digital economy and data centers in the region. 

“The government continues to implement prudent fiscal policies while remaining countercyclical in order to maintain economic stability and people’s purchasing power. Subsidy reform also continues to be carried out by improving the accuracy of beneficiary targeting,” Airlangga said in his statement on Thursday, June 11. 

Deregulation and Acceleration of Strategic Projects 

On the other hand, he said the government is also strengthening the investment climate through various deregulation measures and the acceleration of strategic projects to maintain economic growth momentum. 

“To accelerate economic growth, the Government has established the Task Force for the Acceleration of Government Programs to Support Increased Economic Growth and the Strengthening of the Investment Climate. Initial measures that quickly produced results include simplifying import approvals, standardizing business licensing processes, and accelerating strategic investment projects,” he said. 

In addition, the government also continues to expand export market access through a number of international trade agreements. Airlangga said Indonesia is pushing for the completion of various comprehensive economic partnerships, including the Indonesia-European Union CEPA, Indonesia-Canada CEPA, and the Indonesia-Eurasian Economic Union Free Trade Agreement (I-EAEU FTA). 

The government is also continuing tariff negotiations with the United States, the accession process to the Organisation for Economic Co-operation and Development (OECD), and preparing the Indonesia-United Kingdom CEPA as part of its trade diversification strategy amid global geoeconomic dynamics. 

This article is published in partnerhsip with Katadata 

Original article here