Sunday, 01 November 2026
MEDAN | INDATANEWS.COM - Investment in Indonesia's North Sumatra Province (Sumatera Utara) reached IDR 37 trillion by the third quarter of 2026, generating employment for 64,656 people. The growth has strengthened the regional economy and reinforced North Sumatra's position as an increasingly attractive destination for domestic and international investors.
The Head of the North Sumatra Provincial Investment and One-Stop Integrated Services Agency (DPMPTSP), Nurbaiti Harahap, outlined the latest developments during a press briefing organised by the North Sumatra Provincial Office of Communication and Informatics. The event took place in the lobby of the Dekranasda Building at the Governor's Office, Jalan Pangeran Diponegoro No. 30, Medan, on Tuesday, 27 October 2026.According to Nurbaiti, investment in North Sumatra has maintained a positive trend over recent years. The provincial government is continuing its efforts to attract more capital by improving the business climate, simplifying licensing procedures and opening up investment opportunities across various economic sectors.
"Over the past three years, investment in North Sumatra has continued to increase. In 2023, investment reached IDR 39 trillion, creating employment for 76,230 people. In 2024, the figure rose to IDR 48.2 trillion, with 46,232 people taken on. In 2025, investment increased again to IDR 58.5 trillion, providing employment for 60,133 people," she said.The transport, warehousing and telecommunications sector is another major contributor. The food industry, electricity, gas and water supply, as well as various service industries, also play important roles in strengthening the province's investment base.
The performance of these sectors demonstrates that investment opportunities in North Sumatra extend well beyond a single industry. Growth in manufacturing, transport infrastructure, telecommunications, energy supply and services is creating broader opportunities for economic development.This also gives North Sumatra greater scope to strengthen its position as a strategic economic centre in western Indonesia. Increased investment in productive industries is expected to generate more jobs, strengthen supply chains and increase regional economic value.
Singapore ranks as the largest foreign investor, with investment totalling IDR 18.302 trillion, accounting for approximately 61 per cent of all foreign investment in North Sumatra.
The figure highlights the strength of investment ties between North Sumatra and Singapore. The provincial government intends to expand international cooperation to encourage more countries and global companies to consider the province a competitive investment destination.Investment activity is also increasing across various regencies and municipalities. A more balanced regional distribution is considered important for reducing economic disparities and developing new economic centres beyond major urban areas.
Nurbaiti identified five regencies and municipalities with the highest investment contributions: Simalungun Regency, Medan City, Deli Serdang Regency, South Tapanuli Regency and Langkat Regency."The five regencies and municipalities with the highest investment levels in North Sumatra are Simalungun, Medan City, Deli Serdang, South Tapanuli and Langkat," she said.
The agency also regularly provides technical training on Investment Activity Reports (Laporan Kegiatan Penanaman Modal – LKPM). These programmes help medium-sized and large companies, as well as certain smaller businesses, better understand their obligations to report investment realisation.
As part of these efforts, businesses are encouraged to submit their reports online through the Risk-Based Online Single Submission system (OSS-RBA). This digital platform forms part of the government's wider efforts to make business licensing and reporting procedures more transparent and efficient.Accurate investment reporting is also essential for reliable economic data. Transparent information enables the government to make informed policy decisions, identify economic opportunities and develop strategies to attract further investment.
In line with North Sumatra Governor Muhammad Bobby Afif Nasution's target of increasing investment to IDR 100 trillion by 2029, Nurbaiti expressed confidence that the provincial government could achieve the goal.She said the agency would continue working to create a more favourable investment climate through simpler administrative procedures, stronger supervision and improved conditions for businesses.
One of the measures involves expanding public awareness of Regional Regulation No. 3 of 2023 on Investment Incentives and Investment Facilitation (PIKI). The provincial government is also encouraging individual regencies and municipalities to introduce similar provisions through regional regulations, regency head regulations and mayoral regulations."We are also stepping up efforts to raise awareness of Regional Regulation No. 3 of 2023 on Investment Incentives and Investment Facilitation (PIKI). At the same time, we are encouraging regencies and municipalities to introduce their own regulations, including regional regulations and regulations issued by regency heads and mayors. Once these provisions are in place, businesses can be offered more investment incentives," she explained.
Expanding investment incentives to the regency and municipal levels is expected to make North Sumatra more attractive to investors across the province. With reliable regulatory frameworks and better conditions for businesses, the province aims to broaden its investment base, create more employment opportunities and achieve more balanced economic growth towards its IDR 100 trillion investment target by 2029. (IDNC)REPORTER: Ahmad Zulfikar | EDITOR: Fik Sagala
