Monday, 20 July 2020 19:02

Indonesian Government Encourages Investment amid Covid-19 Pandemic

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The Investment Coordinating Board is targeting to attract foreign investors to invest in Indonesia amid the Covid-19 pandemic.

Spokesperson for the Investment Committee, Tina Talisa in a discussion held by the National Disaster Mitigation Agency in Jakarta, Friday (17/07) said that the target is in accordance with President Joko Widodo's announcement last June 30th. At that time, the President revealed there were seven foreign companies that are interested in relocating investment to Indonesia, including companies from Thailand, Malaysia, and China. The Investment Coordinating Board has the task to catch the investment relocation signal.

The government focuses on encouraging the realization of industrial sector investment in the country, both from foreign and local investors. This strategic step aims to strengthen the manufacturing structure in the country so that it can strengthen the supply chain and competitiveness.

Head of the Ministry of Industry Data and Information Center, Janu Suryanto said that he would continue to oversee investment in the industrial sector. Therefore, the investment is believed to spur production capacity to meet the needs of the domestic market to export.

As a result of the Covid-19 pandemic, the achievement of Foreign Investment during the first quarter of 2020 reached only Rp 98 trillion, a decrease of 7 percent compared to the realization of the same period in 2019.

Attracting foreign investment, especially during the Covid-19 pandemic, is certainly not easy. Reformative steps are needed. Satu Kahkonen, World Bank Representative Head for Indonesia and Timor Leste, in a virtual discussion on the Indonesia Economic Prospects, Thursday (16/7) said that to rebuild Indonesia's economy, there are three key reforms.

First, there is a removal of business restrictions through the Omnibus Law so that it can remove obstacles for investors to enter Indonesia. Second, reformation of State-Owned Enterprises is needed to promote investment. While the third point is that it’s necessary to accelerate tax policy.

According to Satu Kahkonen, Indonesia is currently experiencing a huge gap in the realm of infrastructure. This cannot be overcome solely based on public funds or the State Revenue Budget. The World Bank Representative for Indonesia and Timor Leste said that Indonesia must be able to mobilize finance from the private sector.


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