[REVISION HISTORY]

Indonesia investment and regional development reforms

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2026-10-09 10:04 UTC → 2026-10-10 12:41 UTC · added ~~removed~~

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. The ministry is seeking third-party collaborations, including partnerships with Islamic boarding schools, to manage land assets across 612 transmigration zones for sectors such as agriculture, mining, and tourism. Under the administration of President Prabowo Subianto, Minister Muhammad Iftitah Sulaiman Suryanagara ~~further~~ clarified that the program will move toward a model of regional development centered on investment, industrialization, and ~~downstreaming to create jobs and alleviate poverty.~~ downstreaming. To support this, the Ministry is preparing regulatory updates to ~~the Transmigration Law to~~ strengthen the collection of non-tax state revenue (PNBP) from companies utilizing transmigration lands. ~~Currently, over 50 companies use these lands, but existing regulations lack~~ In early October 2026, Minister Sulaiman began promoting the ~~legal basis for PNBP collection. Additionally, more than 60 regional heads have requested their areas be designated as transmigration zones. The Ministry plans~~ Rempang Eco-City in Batam using a strategy termed ‘ada gula, ada semut’ (where there is sugar, there are ants) to ~~prioritize these requests based on~~ stimulate economic ~~potential, particularly in Eastern Indonesia, while emphasizing land certification~~ activity and ~~the protection of~~ attract local ~~communities to ensure they~~ populations through events like the Transmigration Festival and educational opportunities. Concurrently, regional development initiatives are ~~not displaced by incoming investment.~~ 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.

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