Post by : Meena Ariff

Photo: Reuters

Indonesian Finance Minister Sri Mulyani Indrawati said that removing unnecessary rules is very important to speed up investment and help the country’s economy grow faster.

She spoke about this during a meeting with members of Indonesia’s House of Representatives in Jakarta on Thursday. The meeting focused on the recent slowdown in national investment during the first three months of 2025.

The minister explained that the government is working to make it easier and faster for businesses to get licenses, especially at the local government level. They also want to simplify the process for importing goods needed by local industries. Another important step is to support big investments by lowering the required level of domestic components in products.

Besides these changes, the government is improving other policies like tax benefits, encouraging more foreign investment, and strengthening state-owned companies. One example she gave was the big success in cutting 145 rules about distributing subsidized fertilizers. This helped farmers get fertilizer on time, which is good for farming growth.

Sri Mulyani said that to grow the economy by more than 5 percent, the country must increase investment significantly.

In the first quarter of 2025, investment grew only 2.1 percent compared to the same time last year. Data from the Investment Coordinating Board showed that total investment reached Rp465.2 trillion, which is higher than last year’s Rp401.5 trillion. However, the growth rate was slower than the 22.1 percent growth recorded in early 2024.

She also mentioned that policies to develop Special Economic Zones are being strengthened. The Customs and Excise department is helping local industries become competitive globally by providing better supervision and facilities.

Sri Mulyani stressed that boosting investment is key to keeping the economy growing well.

Indonesia aims to grow its economy between 4.7 and 5 percent in 2025. To reach this, household spending needs to grow above 5 percent, and investment must grow by 4.5 to 4.7 percent.

She pointed out that since investment growth was only 2.1 percent in early 2025, the country must work hard to double this rate to meet its goals.