Investments to North Sumatra reached Rp 28.41t in H1 2025

Investments to North Sumatra Province was revealed to have reached Rp 28.41 trillion in the first half (H1) of 2025, or about 60 percent of the province's annual investment target for this year, during the North Sumatra Economic and Investment Synergy (SEMESTA) press conference by the North Sumatra Communication and Informatics Office at the North Sumatra Governor's Office in Medan City, North Sumatra on Sep. 29, 2025.

"Foreign investments reached [nearly] Rp 11.98 trillion while domestic investments reached Rp 16.43 trillion, with the largest contribution coming from the transportation, warehousing, and telecommunications sector at Rp 7.76 trillion," informed North Sumatra Investment and One-Stop Integrated Services Office (DPMPTSP) Head Chandra Dalimunthe.

Other sectors contributing to overall investment in North Sumatra for H1 2025 include the pharmaceutical and chemical manufacturing sector with Rp 5.74 trillion, the food manufacturing sector (Rp 2.96 trillion), the electricity, gas, and water sector with Rp 2.68 trillion, as well as the trade and repair sector with Rp 1.56 trillion.

Chandra detailed the major investment realization locations in North Sumatra encompass Simalungun Regency with Rp 11.98 trillion, Medan City with Rp 6.07 trillion, Deli Serdang Regency with Rp 3.21 trillion, South Tapanuli Regency with Rp 2.31 trillion, and Batubara Regency with Rp 534.42 billion.

The North Sumatra Provincial Government's strategy to encourage investment to the province includes providing investment facilities and incentives through North Sumatra Regional Regulation No. 3/2023 and North Sumatra Gubernatorial Regulation No. 3/2025. These include various discounts or relief on taxes that fall under the provincial government's purview, including on the motor vehicle tax, heavy equipment tax, and surface water tax.

The North Sumatra DPMPTSP government is optimistic that the investment target of Rp 53.67 trillion in 2025 could be achieved through excellent service of the province's Online Single Submission Risk Based Approach (OSS-RBA) and Siap Layani applications.

"We are simplifying licensing through the OSS[-RBA] online application and Siap Layani, an independent application owned by the North Sumatra Provincial Government. The OSS[-RBA] target is 1,997 permits issued, while Siap Layani is targeting 391 [for this year]," added Chandra.

He also explained that the North Sumatra DPMPTSP is working to increase investment in the downstream industry side of the palm oil sector.

"We are working to improve this sector through derived products such as cooking oil, soap, and biodiesel," Chandra concluded.