Indonesia investment and regional development reforms

Indonesia is implementing various administrative and regulatory reforms aimed at facilitating investment and regional economic development.

In September 2026, the government began streamlining permit processes for foreign workers and investors. This includes the establishment of a dedicated service unit at the Kendal Industrial Park to provide on-site immigration services. Nationally, the Ministry of Investment and Downstreaming is working to integrate platforms from the ministries of investment, manpower, and immigration to ensure permit processing is completed within five days.

By October 2026, the Ministry of Transmigration announced efforts to reform the Transmigration Law, transitioning the program from simple population movement toward the creation of economic growth centers. Under the administration of President Prabowo Subianto, Minister Muhammad Iftitah Sulaiman Suryanagara clarified that the program will move toward a model of regional development centered on investment, industrialization, and downstreaming. To support this, the Ministry is preparing regulatory updates to strengthen the collection of non-tax state revenue (PNBP) from companies utilizing transmigration lands.

In early October 2026, Minister Sulaiman began promoting the Rempang Eco-City in Batam using a strategy termed ‘ada gula, ada semut’ (where there is sugar, there are ants) to stimulate economic activity and attract local populations through events like the Transmigration Festival and educational opportunities.

Concurrently, regional development initiatives are expanding. Sumatera Utara Governor Bobby Nasution presented five regional priorities to Bappenas, including hospital construction in Medan and development in the Nias Islands. Nasution is also seeking investment cooperation with Japan regarding fisheries, tourism, and human resource development.