Jakarta, April 29 (Antara) - Although the realization of investment in the country over the past two years has always overshot the set targets, the government believes there are still barriers hindering investment growth.
In order to boost growth, the government is making every effort to identify and remove barriers hampering business development and investment growth in various parts of the country.
Regulations still exist that are viewed as constraints to expansion of business and investment and are now being evaluated.
According to Thomas Trikasih Lembong, the head of the Capital Investment Coordinating Board, President Joko Widodo had announced that 23 ministerial regulations were considered to hinder investment and business.
Hence, the government is holding in-depth discussions on the possible revocation of the 23 ministerial regulations and several other regulations.
President Jokowi has also assigned 12 ministers to serve as liaison officers for investment matters. The president gave the special assignment in an effort to seek investment opportunities as well as to identify and solve problems that hinder investment in Indonesia. They should guard and ensure that the investment process is realized.
Village, Disadvantaged Regions, and Transmigration Minister Eko Putro Sandjojo is one of the 12 ministers who has been assigned that task. Minister Sandjojo expressed readiness to serve as a bridge to facilitate the efforts to find solutions for overcoming various investment barriers in the region.
"I will handle it as soon as there is a complaint. I have relatively good relations with districts and regions in the country. Moreover, I am the minister for villages, disadvantaged regions, and transmigration," the minister noted in a written statement made available to Antara on Friday (Apr 28).
Minister Sandjojo said to encourage investment in various parts of the country, his ministry has announced at least four programs that have been welcomed in the regions. He admitted that investors often complained of regional regulations. Yet, he believed that the complaints could be tackled soon.
"My main task is to (serve as a) bridge (to tackle the) arising problems, especially in the regions. I think we can solve the problem if we sit together to discuss it. Such a problem should have been solved because the government has issued economic policy packages," he remarked.
The ease of doing investment in Indonesia has been improving, raising its rating to 91 in 2016 from 106 in 2015. According to the minister, the Indonesian ease of doing business rating will continue to improve if all elements of society take part in creating a conducive investment climate.
Hopefully, with this condition, along with the spirit of deregulation, the Indonesian economy and investment will continue to grow and improve the ease of doing business.
After all, according to BKPM chief Thomas Trikasih Lembong, in the past five years the spirit of deregulation began to slacken off amid the lack of momentum of economic reform, adding the condition contributed to restriction on investment.
"It is not the first time I talk about this. In the past 4-5 months what we see instead of deregulation, there were re-regulation. There were more ministerial regulations and new regulations, prerequisites, and new licenses," he said.
He quoted the president as saying that the new regulations instead of contributing to acceleration, had discouraged investment and restricted business expansion. The condition needs serious addressing to meet high targets for investment in 2017 and 2018, he added.
Actually, realization of investment in Indonesia has overshot the target over the past two years. Realization of investment in 2015 was recorded at Rp545.4 trillion, exceeding the target set for that year at Rp519.5 trillion. The same thing also happened in 2016 when realization of investment was Rp612.8 trillion, higher than the target set at Rp595 trillion.
"We need to revive the momentum of reform and the spirit of deregulation. We also have to remind ourselves of the importance of deregulation and rationalization of regulations and licenses," Lembong said.
The BKPM has set the domestic and foreign investment target for 2017 at Rp678 trillion and and Rp863 trillion in 2018. "Anytime, we have investment target. For 2017, it has been set at Rp678 trillion," Chief of the BKPM Secondary Sector Sub-directorate Wahyono said after addressing an investment coordination meeting in Yoyakarta on Thursday (April 27).
Compared to the previous year, the investment target for 2017 has increased. "The amount of realized investment increases every year. The investment target must not fall," he stated.
Meanwhile, in the first quarter of 2017, realization of direct investment reached Rp165.8 trillion or 24.4 percent of the target for the whole year.
To attract more domestic and foreign investment, the agency provides online investment licensing and reporting services.
The BKPM head office serves foreign investors, and the BKPM regional offices serve domestic investors. The domestic investment services are also classified into district and provincial levels depending on the amount of investment. ***3***(A014/INE)EDITED BY INE
(T.A014/A/BESSR/A. Abdussalam) 29-04-2017 13:50:1 |
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