Government Engagement: Ministry of Investment and Downstream Industry (BKPM)

Proud moment for Mandala Consulting as we presented the Market Intelligence and Benchmarking Study to the Ministry of Investment and Downstream Industry / Indonesia Investment Coordinating Board (BKPM) and its global The Indonesian Investment Promotion Centre on 12 March 2025 at the BKPM Headquarters.

Commissioned by Indonesia Investment Promotion Center (IIPC) Singapore, this study compares Indonesia’s Foreign Direct Investment (FDI) policy landscape with selected ASEAN Member States—providing strategic input to strengthen Indonesia’s positioning amid intensifying competition and shifting global dynamics.

Southeast Asia is now the second-largest FDI destination in Asia (USD 114 billion in inflows), and ongoing geopolitical tensions are prompting many MNCs to diversify operations and seek more resilient destinations.

Key findings:
Countries like Vietnam, Thailand, and Singapore actively retain investors through structured post-investment forums where governments address concerns and outline policy directions.

Across ASEAN, countries are adopting innovative and targeted approaches to stay competitive in attracting FDI. Malaysia utilizes integrated incentive portals to improve investor access and transparency. Thailand engages local consultants to localize promotion strategies and expand investor reach. Meanwhile, Singapore offers a dedicated investment concierge service to streamline facilitation and enhance investor experience.

The way forward:
Institutionalizing regular investor forums can help sustain and grow investor confidence.

High-impact Free Trade Area (FTAs) and targeted sector strategies can better attract export-oriented investment.

We extend our appreciation to the BKPM's Director of Promotion for Southeast Asia, Australia, New Zealand, and the Pacific, Bapak Saribua Siahaan and Director of Promotion Development, Bapak Rachmat Yulianto, as well as the IIPC network for the thoughtful exchange and continued trust in Mandala’s work.