EVALUATING INVESTMENT CONVERSION GOVERNANCE OF IPRO IN BARRU REGENCY

Abstract

Investment Project Ready to Offer (IPRO) is a regional investment promotion instrument designed to connect local investment potential with prospective investors. In Barru Regency, South Sulawesi, IPRO documents have been developed since 2021; however, by 2025, none of the promoted projects had resulted in a Letter of Intent (LoI), Memorandum of Understanding (MoU), or actual investment realization. This study evaluates the utilization of IPRO by the Regional Investment and One-Stop Integrated Service Agency (DPMPTSP) of Barru Regency using the CIPP model (Context, Input, Process, Product). The research employed a descriptive qualitative case study approach through in-depth interviews with seven key informants, document analysis, and limited observation. The findings reveal that the primary issue does not lie in the absence of regional investment potential, but rather in the weak investment conversion governance from promotional documents to investment decisions. Three major failure points were identified: readiness gap, follow-up gap, and commercial-financial gap. The study also found a mismatch between the government-to-business approach used by local government and the business-to-business orientation preferred by investors. This research contributes an investment conversion governance framework emphasizing project readiness audits, investor relationship management, structured investor follow-up mechanisms, and stronger commercial-financial feasibility. Policy recommendations include establishing a cross-sector investment facilitation team, developing investor databases, strengthening investor servicing systems, and integrating IPRO with regional financing and strategic partnerships.