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Investment Minister Confident in Boosting Investment for High Growth

Investment Minister and Investment Coordinating Board (BKPM) Chairman Rosan Roeslani said during a meeting with Singaporean Prime Minister (PM) Lawrence Wong, on Aug. 27 that he next government’s efforts to achieve an economic growth rate of 8 percent, is believed to be an important measure to escape the middle-income trap that is needed for economic growth of at least above 6-7 percent.

“The key driver to achieve that economic growth lies in increased investment contributions, particularly from export-oriented sectors,” he added.

The meeting between Rosan and PM Wong covered several important topics, including geopolitical conditions, investment potential in infrastructure, health, industrial areas, renewable energy, education, food security, and manufacturing. Rosan highlighted Singapore’s role as a key economic and investment partner for Indonesia, noting that Singapore has consistently ranked as the top investor in Indonesia for the last 10 years.

PM Wong expressed optimism about Indonesia's current economic conditions. Despite high geopolitical tensions, PM Wong conveyed the need for improvement in complementary bilateral linkage between countries, specifically Indonesia and Singapore.

Wong affirmed Singaporean investors’ strong interest and commitment to invest in Indonesia, particularly in sectors such as carbon capture storage (CCS), industrial parks and renewable energy power plants in Batam, Bintan, and Karimun (BBK).

“We see the opportunities for data center development in Indonesia with the high growth of start-up technology companies. In this case, the power sources need green energy supply. Indonesia also has great CCS potential, and Singapore will be a CCS user, this is another great potential. We look forward to working closely together,” Wong said.

Rosan mentioned that government’s super tax deduction incentives for investors that provide training and vocational facilities.

“The key point is, the Indonesian government is also focusing on human capital development,” Rosan said.

At the end of the meeting, PM Wong conveyed his plan to visit Jakarta near the inauguration of president-elect Prabowo Subianto as the eighth president of Indonesia.

As part of his working visit to Singapore on Aug. 27, the investment minister signed a memorandum of understanding (MoU) on promoting potential investment in the education sector with chairman and Raffles Education Chew CEO Hua Seng.

Rosan explained that this MoU established a collaborative framework between the Investment Ministry /BKPM and Raffles to explore and facilitate investment opportunities in Indonesia’s education sector, mainly in the new capital of Nusantara.

“I hope that this memorandum of understanding can improve the good relations between the two agencies and explore a wider scope of collaboration, including conducting a comprehensive joint study to explore the potential of investment in education, developing a potential state-of-the-art educational facility, collaborating on initiatives to build the capacity of Indonesian educators, administrators and local education institutions, as well as providing necessary cooperation to support investment promotion and facilitation in education sector,” said Rosan.

This collaboration is also part of ongoing efforts to improve the quality of human resources in Indonesia, ensuring they meet the demands of the current labor market.

In addition to meeting with PM Wong, on the same day, the investment minister also met with several other Singaporean officials and business leaders, including the Singaporean Deputy Prime Minister and Trade and Industry Minister, Singaporean Food Agency (SFA) CEO , Singaporean Economic Development Board (EDB) Chairman, and Enterprise Singapore (ESG) Executive Chairman.

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