Jakarta, Jan 16 (Antara) - The government is resolved to achieve an economic growth of some 5.4 percent this year by empowering two task force teams, despite some being skeptical about the target being realized.
Head of the National Development Planning Board Bambang Brodjonegoro highlighted the need for hard work to attain the economic growth target of 5.4 percent set for this year.
Hard work is needed, as the country's economic growth still relies mainly on the consumption sector, Brodjonegoro, who is also the national development planning minister, had noted in Jakarta on Monday (Jan 8).
To this end, the government will increase synergy between the Economic Policy Package Task Force and the Task Force on Acceleration of Doing Business to boost investment and the economy.
"It is necessary to ensure continuity of work between the two task force teams, so that increased investment and ease of doing business in Indonesia can be realized effectively," Coordinating Minister for Economic Affairs Darmin Nasution noted as he led a coordination meeting in Jakarta on Wednesday (Jan 10).
Nasution pointed out that one of the problems faced so far in the functioning of the task force teams is that information on the ease of doing business policy is yet to be disseminated at the local government level, thereby hampering the investment process.
Hence, this calls for the taskforce teams of the central government to play an active role in overseeing the functioning of the local government to identify problems and obstacles faced in the implementation of the ease of doing business policy in every region of Indonesia.
"The government will continue to mobilize the task force teams in the leading sector that is responsible for overseeing business activities throughout the region. This task force is equipped with an online communication system in order to track all current investment requests," the economic coordinating minister stated.
Nasution expects that through the merging of the two task force teams, the bottleneck faced in the investment licensing process can be immediately identified and opportunities to encourage higher investment can be seized, so that economic performance can be more optimal than ever.
The integration of the two task force teams will be supported by a single submission system that will become fully operational by March 2018. The system is being tested in the second week of January 2018 in three areas: Purwakarta, Palu, and Batam.
The Economic Policy Package Task Force was formed to oversee the implementation of the package of economic policies that were published in 16 tranches since September 2015. Meanwhile, the Task Force on Acceleration of Doing Business aims to oversee the implementation of Presidential Regulation No. 91 of 2017 On Ease of Doing Business.
Through synergy between the two task force teams, 190 projects in the pipeline worth Rp351 trillion and US$54.6 billion, which had been stalled since 2010, can be realized through coordination of the Working Group (Pokja) of the Economic Policy Package.
Currently, the Pokja of the Economic Policy Package Task Force is tasked with handling various problems related to investment licensing that arise following the issuance of the economic policy package.
To solve investment problems, the Pokja has a special system in place that is integrated with the communication protocol network among the task force teams, businesses, and the community.
Overall, investment projects, both new and in the pipeline, from September 24 to December 14, 2017, have reached 1,054 in total worth $42.6 billion. It will be the government's top priority to ensure that the investment sector will contribute to economic growth.
According to Minister Brodjonegoro, the growth target of 5.4 percent reflects optimism, as the country still relies heavily on the consumption sector and natural resources as the drivers of its economic growth. The country has yet to fully capitalize on the improved global economic conditions to boost domestic economic development, especially exports.
"We did post an increase in exports, but neighboring countries recorded a higher growth, as they succeeded in capitalizing on the growing global demand," he pointed out.
Thus, it is not surprising if neighboring countries -- Singapore, Malaysia, and Vietnam -- were able to gain more from the improvement in global economic conditions.
Hopes are riding high on the global commodity prices continuing to climb this year to help the country achieve this year's economic growth target of 5.4 percent.
In the previous years, the country could boast only in terms of the potential of the investment sector and not the realization. However, the third quarter of 2017 recorded a significant increase in direct investment, with a growth of seven percent as against only four to five percent in the previous years.
According to Suahasil Nazara, head of the Fiscal Policy Agency of the Finance Ministry, consistent structural reforms will drive economic growth to a higher level.
"We would be able to grow 5.4 percent in 2018 if we were successful in removing the stumbling blocks in the manufacturing sector," Nazara noted.
Nazara remarked that the country's economic growth had not been optimal, adding that there is still a possibility of improving economic performance in 2018.
The opportunity could be utilized through the implementation of the 16 tranches of policy packages in the real sector, especially in the agro or manufacturing industries.
"Only the 16 policy packages and stronger flexibility in reforms in the real sector could drive the agricultural and manufacturing sectors," he added.***3*** (A014/INE/o001)
EDITED BY INE(T.A014/A/BESSR/O. Tamindael) 16-01-2018 12:23: |
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