Editor’s Note
- North Sumatra aims for 100 trillion rupiah in realized investments by 2029
- Investments in North Sumatra continue to increase
- Simalungun Regency is the largest contributor to realized investments in North Sumatra
- Strengthening business supervision in 33 regencies/cities
- Dissemination of regional regulations on investment incentives and facilitation
- Development of an e-catalog of investment projects
North Sumatra aims for 100 trillion rupiah in realized investments by 2029
Realized investments in North Sumatra (Sumut) have shown a positive trend in recent years. Under the leadership of North Sumatra Governor Muhammad Bobby Afif Nasution, the North Sumatra Provincial Government (Pemprov) aims to achieve an investment return of 100 trillion Indonesian rupees (IDR) by 2029.
This target should contribute to a national economic growth of 8 percent by 2029.
“Our investment returns have increased year after year, as have employment opportunities,” said Damar Wulan, investment coordinator of the North Sumatra Investment and One-Stop Integrated Services Agency (DPMPTSP), during a press conference held by the Communications and Information Agency in the Dekranasda lobby of the North Sumatra Governor’s Office, Jalan Diponegoro, Medan, on Wednesday, March 4, 2026.
Investments in North Sumatra Continue to Increase
Over the past three years, investment returns in North Sumatra have continued to increase. In 2023, investment returns reached IDR 39 trillion, creating 76,230 jobs.
In 2024, this figure will rise to IDR 48.2 trillion, with 46,232 employees. In 2025, investment realization will further increase to IDR 58.5 trillion, with 60,133 employees.
“In 2025, our investment realization will reach IDR 58.5 trillion, exceeding the Investment Coordinating Committee (BKPM) target of IDR 53.67 trillion,” Damar said.
Simalungun Regent Largest Contributor to Investment Realization in North Sumatra
Damar explained that Simalungun Regent, with the presence of the Sei Mangke Special Economic Zone (SEZ), is the region with the largest investment realization in North Sumatra. This is followed by Medan, the Deliserdang Regency, South Tapanuli, and Langkat.
“Among the countries with the largest investments in North Sumatra, Singapore currently dominates with 61% of the investments, followed by the Netherlands, Malaysia, the United Kingdom, and China,” he explained.
The main sectors contributing to investments in 2025 are chemicals and pharmaceuticals, transportation, storage, and telecommunications, food processing, electricity, gas, and water, and other service industries.
Strengthening supervision of businesses in 33 districts/cities
In line with the directive of the Governor of North Sumatra to achieve an investment target of 100 trillion rupees, Damar stated that the North Sumatra DPMPTSP is optimistic that this target can be achieved by 2029.
“We are optimistic about achieving the 100 trillion rupee investment target. Various efforts and strategies will be implemented,” he said.
To enhance regional competitiveness, the North Sumatra DPMPTSP is strengthening its supervision of businesses in 33 districts/cities, with a target of at least 177 businesses.
In addition, the DPMPTSP also regularly provides technical guidance on completing the Investment Report (LKPM) to 200 businesses per quarter. This activity is designed to guide certain medium-sized, large, and small businesses in reporting completed investments online through the OSS-RBA system.
“Many businesses have reported their investment activities, but some reports are still incomplete. That’s why we are conducting this intensive technical guidance program to ensure businesses understand how to correctly complete the LKPM (Investment Report),” says Damar.
Dissemination of regional regulations on investment incentives and facilitation
The North Sumatra DPMPTSP also aims to facilitate the processing of permitting issues for 30 businesses to accelerate the realization of business operations.
“We will facilitate the processing of permitting issues for all businesses,” Damar explained.
To achieve investment targets more quickly, a Task Force for Accelerating Business Implementation and a Working Group for Accelerating Regional Investment Competitiveness have been established, in accordance with Government Decree No. 28 of 2025.
“We are also maximizing the dissemination of Regional Regulation No. 3 of 2023 on the provision of investment incentives and facilitation (PIKI) to 120 companies. We encourage districts/cities to also adopt regional regulations/district regulations/mayoral regulations regarding PIKI. It is better if regions develop these regulations so they can offer more incentives to companies,” he explained.
Developing an e-catalog for investment projects
Regarding promotion, the North Sumatra DPMPTSP is undertaking a digital transformation by revamping the investment promotion platform, such as developing an e-catalog for investment projects, a GIS-based database of investment opportunities, virtual investment tours, and optimizing professional digital media.
The promotion strategy is also being implemented in a more segmented manner based on leading sectors and target countries for investors.
“In accordance with the governor’s directive, we will also prepare a study document on the use of regional assets, which we can offer to companies. For example, the sports center, which covers approximately 300 hectares, will consist of 200 hectares of land for the sports center itself and the remaining 100 hectares for other purposes. We will prepare a study document and offer it to investors as part of our efforts to increase investment in North Sumatra,” Damar explained. ***obs
