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Indonesia: Domestic investment hits Rp2,000 trillion as energy subsidies rise
Domestic investment in Indonesia, known as Penanaman Modal Dalam Negeri (PMDN), has reached nearly Rp2,000 trillion during the first two years of President Prabowo Subianto’s administration. Anindya Bakrie, Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), reported that domestic investment now accounts for more than half of the nation’s total investment, driven significantly by middle-class entrepreneurs. This surge is seen as a stabilizer for the national economy against global geopolitical and economic uncertainties. Kadin noted that private sector interest is shifting toward future industries, including electric vehicles, renewable energy, and data centers.
Simultaneously, the Energy Transition Policy Development (ETP) Forum has called for urgent energy subsidy reforms. Energy subsidy and compensation spending reached Rp376.8 trillion from January to September 2026, a 54.1 percent increase compared to the same period the previous year. The forum highlighted that approximately half of these subsidies are reportedly enjoyed by the wealthiest 20 percent of households.
Fiscal pressures are being exacerbated by rising global oil prices and a weakening rupiah. In September 2026, the Indonesian Crude Price (ICP) reached US$112.81 per barrel, significantly exceeding the state budget assumption of US$70 per barrel. Additionally, the rupiah exchange rate hovered around Rp18,000 per US dollar, surpassing the budget assumption of Rp16,500.
Entities
Anindya Bakrie · Badan Pusat Statistik · ETP Forum · Energy Transition Policy Development Forum · Gibran Rakabuming Raka · Indonesia · KADIN Indonesia · Prabowo Subianto
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Energy subsidy and compensation spending reached Rp376.8 trillion from January to September 2026. www.industry.co.id · www.jawapos.com · www.jpnn.com
- [● 2 SOURCES] The ETP Forum recommends using the National Single Social and Economic Data (DTSEN) for subsidy reform. www.jpnn.com
- [● 3 SOURCES] The Indonesian Crude Price (ICP) reached US$112.81 per barrel in September 2026. www.industry.co.id · www.jawapos.com · www.jpnn.com
- [● 3 SOURCES] The rupiah exchange rate was around Rp18,000 per US dollar in September 2026. www.industry.co.id · www.jawapos.com · www.jpnn.com
- [○ 1 SOURCE] The renewable energy mix fell from 18.3 percent in Q1 2026 to 17.3 percent in Q2 2026. www.industry.co.id
- [● 3 SOURCES] The state budget assumption for oil price was US$70 per barrel. www.industry.co.id · www.jawapos.com · www.jpnn.com
- [● 3 SOURCES] Energy subsidy spending increased by 54.1 percent compared to the same period in the previous year. www.industry.co.id · www.jawapos.com · www.jpnn.com
- [● 2 SOURCES] Approximately half of the energy subsidies are enjoyed by the wealthiest 20 percent of households. www.jawapos.com · www.jpnn.com