Prabowo: Indonesia’s Investment Reaches Rp1,010 trillion in first half of 2026

JAKARTA, Jakartaweekly.com—President Prabowo Subianto said Indonesia’s investment realization continued to grow amid global uncertainty. He made the statement during the Annual Session of the People’s Consultative Assembly (MPR) and the Joint Session of the House of Representatives (DPR) and Regional Representatives Council (DPD) on August 14, 2026.

In his speech, Prabowo presented several reports on Indonesia’s economic and government performance. He said investment realization in Indonesia reached Rp1,931 trillion in 2025, creating more than 2.7 million jobs.

Meanwhile, investment realization reached Rp1,010 trillion in the first half of 2026, creating more than 1.4 million jobs.

The achievement came as the world faced geopolitical conflicts, trade wars, open warfare in Europe and the Middle East, as well as conflicts in various other parts of the world.

“The entire world is experiencing supply chain disruptions and economic pressures. Under these circumstances, Indonesia must become increasingly capable of standing on its own feet,” Prabowo said.

Furthermore, Prabowo said Indonesia’s economy grew 5.61% in the first quarter of 2026 and 5.45% in the first half of 2026. He claimed that the economic growth recorded in the first quarter and first half of the year was the highest in the past 13 years.

However, Prabowo stressed that economic growth and investment were not the government’s ultimate goals. According to him, the ultimate objective is to improve people’s welfare.

“Every rupiah of investment must create jobs. Every policy must improve people’s lives. That is the orientation of the government I lead,” he said.

In the food sector, Prabowo said Indonesia had achieved self-sufficiency in rice, corn, large chilies, bird’s eye chilies, consumer sugar, chicken meat, chicken eggs and shallots.

Going forward, the government will seek to achieve self-sufficiency in garlic, soybeans, beef and buffalo meat.

Prabowo also said the government had built 100 fishing villages out of a target of 1,100 villages that are expected to be established and fully operational by the end of 2026.

By 2027, the government is targeting 1,582 modern fishing vessels. The program is intended to increase prosperity among Indonesian fishermen, considering that Indonesia’s fisheries sector generates around US$34 billion annually.

State-Owned Enterprises Performances

Prabowo also said profits at state-owned enterprises (SOEs) in 2024 had been revised to Rp186 trillion, with dividends amounting to Rp85.5 trillion.

Following efforts to improve their performance, SOE profits reached Rp326 trillion in 2025, representing a 75.3% year-on-year increase from the previous year.

After deducting state capital injections (PMN), dividends paid to the state amounted to Rp53 trillion in 2024 and Rp138 trillion in 2025, representing a 160% increase.

The government has taken several measures to streamline SOEs, including shutting down 290 unproductive companies, with a target of closing 300 by the end of this year.

The streamlining process has enabled the government to save around Rp50 trillion in overhead costs. Overall, the government plans to shut down 750 SOEs considered unproductive.

“Only productive companies, only those that create added value, will be retained,” Prabowo said.

In addition to streamlining SOEs, the government reported that it had successfully shut down 1,100 illegal mines in Bangka Belitung.

As a result, state-owned tin producer PT Timah recorded an 804.7% year-on-year increase in net profit in the first half of 2026. PT Timah’s valuation also rose 280% year-on-year in August 2026.

The government is also focusing on increasing the net profits of several SOEs.

Prabowo said that in the first half of 2026, PT Semen Indonesia’s net profit increased 408.9% year-on-year, while PT Pupuk Indonesia’s rose 252.8%. Pertamina’s net profit increased 86%, Pegadaian’s rose 84.4% following the transformation of its Gold Bank business, Pelindo’s increased 60.4%, and PTPN’s rose 54.4%.

“Garuda Indonesia has also successfully reactivated aircraft that had been grounded,” Prabowo said.

As of June 2026, the number of aircraft that had been reactivated increased by 20 to 104 aircraft.

Prabowo also said Garuda Indonesia had shown improved performance despite continuing to record losses, particularly due to the war in the Middle East.

“If there had been no war in the Middle East, we would actually have already seen Garuda Indonesia turning a profit,” he said.

SOE dividends are projected to rise again in 2026, with a target of Rp200 trillion excluding state capital injections (PMN).

The government plans to use SOE profits to accelerate downstreaming initiatives. Danantara had conducted groundbreaking ceremonies for 13 downstreaming projects as of February 6, 2026, followed by another 13 downstreaming projects on April 29, 2026.

Gold and Export Proceeds

In the commodities sector, Prabowo said the Gold Bank operated by Pegadaian and Bank Syariah Indonesia had managed 153 tons of gold worth Rp360 trillion, or approximately US$20 billion.

Meanwhile, PT Danantara Sumberdaya Indonesia (DSI) had managed US$14 billion in export proceeds from three strategic commodities, with 6,500 export transactions monitored.

DSI had also identified an additional potential of US$5 billion arising from differences and adjustments in prices, quality and the payment of export proceeds.