NEW INVESTMENT MINISTRY EXPECTED TO DRIVE ECONOMIC TRANSFORMATION BY Fardah

Jakarta, 26/5, 2021 (ANTARA) - The Joko Widodo administration's decision to upgrade the Investment Coordinating Board (BKPM) into the Ministry of Investment has been welcomed by the business community as it is expected to create positive sentiment among domestic as well as foreign investors.

The new ministry, announced by President Widodo on April 28, 2021, has been created to improve the ease of doing business in Indonesia as it struggles to recover from the COVID-19 pandemic. BKPM chief Bahlil Lahadalia has been appointed as the Investment Minister.

Indonesia has been working to realize economic growth of around five percent this year through direct investment, among other things.

The newly formed Investment Ministry is expected to attract investment into the country and create jobs, which are key to driving economic growth in 2021, according to Widodo.

"The key to growth, our economic growth, is investment. Because it is impossible for us to drastically increase our state budget. This means that the key is in investment and creating as many job opportunities as possible, the President said recently.

He then asked that trade policies be formulated to invite investment inflows. Such policies must also help recover economic sectors that contracted last year due to the impact of the COVID-19 pandemic, he added.

Investment Minister Bahlil Lahadalia has formulated a strategy to increase the investment target up to Rp900 trillion for 2021 and Rp5 thousand trillion in 2024.

The new minister has a five-point plan to increase added value with downstream orientation to drive Indonesias economic transformation.

"The first one is investment in the health sector. We know that almost all of our medical devices and medicinal raw materials are imported," he said.

Indonesia betting on SWF to attract foreign investment by Fardah

 Jakarta, January 29, 2021 (ANTARA) - The Indonesian government is determined to continue infrastructure development across the country despite the prolonged COVID-19 pandemic that has severely impacted the economy.

Since the start of his first term in October, 2014, President Joko Widodo (Jokowi) has prioritized national infrastructure development to strengthen connectivity, economic growth, and national unity.

With the nation facing economic difficulty owing to the pandemic, a gap has emerged between development demand and the availability of funding resources. Hence, the Widodo administration has been exploring ways to attract foreign investment to finance infrastructure development projects, as well as support economic recovery efforts.

According to Widodo, a Sovereign Wealth Fund (SWF) would serve as a breakthrough in these endeavors and help the nation attract funding.

On January 27, 2021, Widodo installed the Finance Minister as chairman and appointed four other members of the Supervisory Board of SWF, termed the Indonesia Investment Authority (INA), based on Presidential Decree Number 6/P of 2021 on the appointment of membership of the Investment Authority Supervisory Board.

Finance Minister Sri Mulyani Indrawati has been appointed as chairman and member of the INA. The other members are Minister of State-owned Enterprises (SOEs / BUMN) Erick Thohir, Darwin Cyril Noerhadi, Yozua Makes, and Haryanto Sahari.

On December 15, 2020, the President had issued three governmental regulations on the establishment of Indonesia’s SWF, as mandated in the country’s first omnibus law, Law No. 11 Year 2020 on Job Creation.

The objective of INA will be to increase and optimize long-term investment to support sustainable development, according to Article 5 of the Law. INA will serve as a legal entity answerable to the President and have special authority to represent the sovereign Indonesian government.

GOVERNMENT REMAINS UPBEAT ABOUT INVESTMENT GROWTH IN 2019-2024 PERIOD

Kamis, 1 Ags 2019 19:22

By Fardah
Jakarta, 1/8 (Antara) - To drive more investment that can generate employment opportunities features among the priority programs vowed by President Joko Widodo (Jokowi) in his second term for the 2019-2024 period.
Jokowi outlined his priority programs also encompassing infrastructure development at an event called "Indonesian Vision" held at the Sentul International Convention Center, Bogor, West Java, on July 14, 2019, following his victory in the 2019 presidential elections.
Over the past week, in a bid to pursue the investment target, the president had held meetings with potential investors, including the Abu Dhabi Crown Prince, Sheikh Mohamed Bin Zayed Al Nahyan, who had echoed his countrys commitment to boosting investment in Indonesia.
During a visit to Indonesia on July 24, 2019, three investment pacts worth $9 billion were inked in the presence of the Crown Prince and the Indonesian president at the Bogor Presidential Palace.
On the subsequent day, Jokowi held discussions, prioritizing efforts to intensify investment in Indonesia, with leaders from the Hyundai Motor Group.
"We spoke about the investment plan from Hyundai Motors in Indonesia," Industry Minister Airlangga Hartarto remarked after accompanying President Jokowi to welcome Hyundai Motors delegates at the State Palace in Jakarta.
Hyundai Motors plans to produce vehicles in Indonesia and has outlined an export target of 40 percent abroad and in the domestic market. Discussion on the investment value is yet underway.
Furthermore, Jokowi had received Softbank CEO Masayoshi and Grab CEO Anthony Tan at the Merdeka Palace in Jakarta on July 29.

CROWN PRINCE'S VISIT BOLSTERS PARTNERSHIPS BETWEEN INDONESIA, UAE

Sabtu, 27 Jul 2019 16:45

 By Fardah

Jakarta, 27/7 (Antara) - Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed Al Nahyan visiting Indonesia on July 24, 2019, was historic and memorable, as he was enthusiastically welcomed and held long, friendly discussions with President Joko Widodo (Jokowi).
Indonesian Foreign Affairs Minister Retno Marsudi described the two leaders as having established ties akin to best friends.
"They clicked. This is one of the longest meetings the president has had with a guest from another country," the minister remarked at the Bogor Presidential Palace following the bilateral meeting between the Crown Prince and the president that lasted over 2.5 hours.
Marsudi recalled Sheikh Mohamed's friendly welcome extended to President Jokowi when he had visited Abu Dhabi in 2015.
"When the president visited Abu Dhabi in 2015, Sheikh Mohamed welcomed him at the steps of his jet. They walked to the car together and Sheikh Mohamed himself drove the president to the restaurant. President Jokowi felt very respected," she remarked.
Sheikh Mohamed, who also serves as deputy commander-in-chief of the UAE Armed Forces, arrived in Jakarta with a large delegation comprising Lt General Sheikh Saif Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Interior, Sheikh Hamed Bin Zayed Al Nahyan, Chief of the Abu Dhabi Crown Prince's Court, Sheikh Mohammad Bin Hamad bin Tahnoon Al Nahyan, Chairman of Abu Dhabi Airports, Sultan bin Saeed Al Mansouri, Minister of Economy, Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Industry, Hussain bin Ibrahim Al Hammadi, Minister of Education, Noura bint Mohammed Al Kaabi, Minister of Culture and Knowledge Development, and Dr. Sultan Al Jaber, Minister of State, among others.
The two leaders affirmed their commitment to intensifying collaboration between Indonesia and the UAE, capitalizing on the enormous opportunities for economic and development cooperation, as well as fostering friendship and mutual understanding between the people of both nations.

INDONESIA SETS HIGHER TARGET OF INVESTMENT IN 2019 by Fardah

Jakarta, Feb 5, 2019 (Antara) - Indonesia is optimistic that it will be able to attract more investment this year despite the implementation of simultaneous legislative and presidential elections to be held on April 17, 2019.

        Based on observation over the past 15 years, the government has found out that investment usually slows down before elections.

       Thomas Trikasih Lembong, head of the Investment Coordinating Board (BKPM), has expressed optimism that investment would rebound after the April elections, owing to high market expectation on stability and continuity.

       "It will rebound. (The 2019) election will be held on April 17, and we still have 7.5 months after the voting day for the investment sector to recover from the pre-election slowdown," Lembong said during a discussion with foreign investors.

        The agency has set a target of investment at Rp792.3 trillion (US$56 billion) in 2019, higher than Rp721.3 trillion ($51 billion) in 2018.

         The target has covered 55 percent of foreign investment and 45 percent of domestic investment.

               In 2018, the realization of investment in Indonesia reached Rp712.3 trillion, accounting for 94.3 percent of the target of Rp765 trillion in the medium-term national development plan.

            "In the fiscal year 2018, we failed to achieve the target, because the investment only reached 94.3 percent of the target," Lembong stated on Jan 30, 2019.

           Compared to the previous year, the investment in 2018 rose 4.1 percent, with domestic investment amounting to Rp328.6 trillion and foreign investment amounting to Rp392.7 trillion.

        The investment mostly went to West Java, Jakarta, Central Java, Banten, and East Java.  

INVESTMENT CONTRIBUTES SIGNIFICANTLY TO INDONESIA'S ECONOMIC GROWTH by Fardah

  Jakarta, Nov 11, 2017 (Antara) - The Indonesian government is optimistic of its economic growth, as the nation has managed to record a seven percent growth in investment this year, the highest over in the past several years.

         The country's economy grew 5.06 percent year-on-year in the third quarter of 2017, driven mainly by the consumption sector, and partly owing to the growing investment rate, according to the Central Bureau of Statistics.

         "The growth rate of 5.06 percent, perhaps, was not up to expectations, but some areas, in terms of the data, were very interesting. Investment grew seven percent, the highest in the past several years. This is what we want," Head of the National Development Planning Board and Minister for National Development Planning Bambang Brodjonegoro noted while opening the Indonesia Infrastructure Week 2017 in Jakarta on November 8, 2017.

         Moreover, the construction sector grew seven percent, and positive performance was also recorded in the manufacturing sector, which grew more than four percent, though not up to expectations.

         "The investment sector grew seven percent, the manufacturing sector grew four percent, and the construction sector also grew seven percent. This means there has been a lot of investment in the construction sector, either in property or infrastructure. We begin to see that investment in infrastructure is not only from the government but also from the private sector," he noted.

TOURISM SECTOR TO BE PRIORITIZED WHILE PROMOTING INVESTMENT by Fardah

Jakarta, Feb 25, 2017 (Antara) - The Indonesian government has realized that investing in the tourism industry is a means of stimulating growth over the long term and enabling the poor to share in the economic gains.

         Indonesia has huge potentials in the tourism sector that has yet to be optimally tapped. The country is blessed with serene natural beauty, unique and rich culture and local traditions, and one of most mega-biodiverse regions in the world. 
    The government has set a target to receive 15 million foreign tourists this year and 20 million by 2019. To achieve this goal, better infrastructure and facilities in the tourism industry are needed.   
   Tourism Minister Arief Yahya and Chief of the Investment Coordinating Board (BKPM) Thomas Lembong delivered presentations on the country's tourism potentials before some 400 investors attending the 2017 Regional Investment Forum (RIF) held in Nusa Dua, Bali, which is one of the world's most famous tourist resort island, on Feb 23, 2017.

         The tourism sector is the most inexpensive and easiest means for the government to boost economic growth and foreign exchange as well as create jobs, according to the minister.

         Indonesia's growth in the tourism sector in 2015 was far above that of the Association of Southeast Asian Nations (ASEAN) and also across the world, he noted.

         "In general, Indonesia's tourism sector grew by 10.3 percent, above the five percent growth recorded in the ASEAN and 4.4 percent in the world," he pointed out.

SCHEMES IN PLACE TO ATTRACT FUNDS STASHED ABROAD FOR INVESTMENT by Fardah

Jakarta, July 31, 2016 (Antara) - The Indonesian government is optimistic that funds that has so far stashed abroad by rich Indonesians, will be repatriated following incentives offered through tax amnesty program.

         Last month the House of Representatives (DPR) approved and passed a tax amnesty bill into law, which is expected to result in returning of big funds parked abroad to evade tax.  
    The funds are expected to help increase the state revenues needed to finance economic development and improve domestic financial liquidity amid the global slump.  
    Officially launched on July 1, the tax amnesty program is effective from July 18, 2016 until March 31, 2017.

         To lure parts of the funds, Indonesia's Capital Investment Coordinating Board (BKPM) has prepared an investment scheme.

         "BKPM has a role in accelerating investment by preparing investment scheme for those wanting to use their funds for direct investment," the then head of BKPM Franky Sibarani said recently.

         He said he was confident that the investment scheme would attract those utilizing the tax amnesty policy to invest in Indonesia.

         "The scheme is expected to help the government reach its investment target of Rp594.8 trillion this year," he said.    

RI TO SCRAP OVER 3,000 OUTDATED REGULATIONS TO BOOST INVESTMENT By Fardah

Jakarta, March 31, 2016 (Antara) - The Indonesian Government plans to scrap thousands of local regulations, which seem to be hampering investment, given that they are slowing down the process of licensing and for doing business in the country.         Home Affairs Minister, Tjahjo Kumolo, said 3,226 local regulations are potentially stalling investment and contradicting higher laws in Indonesia.         "We have called officials of legal bureaus of all provinces and sent letters to district heads and mayors, (informing that) within the next three months, such local regulations will be revoked," Tjahjo Kumolo said in Padang, West Sumatra, on March 31.         The regulations contain complicated bureaucratic and licensing procedures.        The minister cited the example of when an investor needs to apply for a principle permit, a building permit (IMB), or a Hinder Ordonantie (HO) or Nuisance Permit, for opening a business in Indonesia.        "In fact, the HO permit is from the Dutch colonial era. Why is it still being used? That's what we want to deal with," he pointed out.

RI OFFERS SIMPLIFIED LICENSING SERVICES TO ATTRACT S KOREAN INVESTORS by Fardah

Jakarta, Feb. 26, 2016 (Antara)- The Indonesian Investment Coordinating Board (BKPM) earlier this month planned to  organize a Forum of South Korean Investors, dubbed "The Three Hours Investment Licenses and Green Lane Facility,"  to publicize the government's latest investor-friendly policies.          The Board also held a Korean Business Dialogue in Jakarta recently to offer easy investment services, called KLIK,  and a three-hour investment licensing facility in the infrastructure field, to 100 investors from South Korea attending the  event.          The new services were expected to lure more South Korean investors to invest in Indonesia, BKPM Chief Franky  Sibarani said in a press statement on Feb. 23.          The Korean Business Dialogue was organized by the Korean Chamber of Commerce and Industry (KCCI),  Kocham, and the Korean Trade and Investment Promotion Agency (KOTRA).          Indonesian Trade Minister Thomas Lembong and the South Korean Ambassador to Indonesia, Cho Tae Young,  were present in the meeting.

THREE-HOUR INVESTMENT LICENSING SERVICE BREAKTHROUGH TO BOOST INVESTMENT by Fardah

Jakarta, Jan 12, 2016 (Antara) - The Indonesian government has given investors a New Year's gift in the form of a new investment licensing service that could cut the processing period for licensing applications from 23 days to just three hours.

         The swift service was officially launched by Vice President M Jusuf Kalla at the headquarters of the Investment Coordinating Board (BKPM) in Jakarta, on January 11, 2016.

         BKPM Chairman Franky Sibarani said the service was in accordance with the Indonesian government's economic policy package II, issued in September 2015, he added.

         Since its trial launch on October 26, 2015, seven companies have used the service to obtain investment licenses for a total investment of Rp17.85 trillion.

        These companies were engaged in manufacturing, real estate, power plants, ports, and livestock farming, Sibarani stated.