President Joko Widodo has appointed numerous ministers to ensure the follow-up of the economic and investment agreements.
Jakarta (ANTARA News) - Foreign direct investment is needed to drive the economy, and therefore, it is paramount to follow up on the economic and investment agreements reached between Indonesia and several friendly countries.

In light of this, President Joko Widodo, better known as Jokowi, has appointed numerous ministers to ensure the follow-up of the economic and investment agreements.

Cabinet Secretary Pramono Anung stated at a press conference that during a cabinet meeting at the Bogor Palace on Monday, President Jokowi had hinted at the presence of some problems related to the follow-up of the agreements.

"As a matter of fact, the presence of investment, particularly foreign direct investment, is needed to help drive the economy in the country," Pramono noted.

To this end, the cabinet secretary remarked that the president took the groundbreaking step by appointing several ministers to shoulder additional tasks to guard and ensure the follow-up of economic and investment agreements with the friendly countries.

He said President Jokowi had appointed the ministers to handle cooperation relating to investment, licensing, and other businesses with friendly countries.

President Jokowi appointed the following ministers to act a liaisons to the respective countries: Energy and Mineral Resources Minister Sudirman Said for the countries in the Middle East region, National Development Planning Minister Sofyan Djalil for Japan, State Enterprises (BUMN) Minister Rini Soemarno for China, and Marine Affairs and Fisheries Minister Susi Pudjiastuti for Russia, among others.

Meanwhile, Trade Minister Thomas Lembong was tasked with bridging cooperation with Australia and European countries, Transportation Minister Ignasius Jonan was entrusted with the responsibility of enhancing cooperation with India, Coordinating Minister of Political, Law, and Security Affairs Luhut Binsar Pandjaitan will act as a liaison to Singapore, and Coordinating Minister of Maritime Affairs Rizal Ramli was assigned to liaison with Malaysia.

Furthermore, Head of the Creative Economy Board Triawan Munaf will act as a liaison to South Korea, Capital Investment Coordinating Board (BKPM) Chief Franky Sibarani is responsible for Taiwan and Hong Kong, Communication and Information Minister Rudiantara for the United States and Latin America, Agriculture Minister Amran Sulaiman for Thailand, Vietnam, and other Asian countries, except Singapore and Malaysia.

"Those ministers designated by the president will play their focal role in the settlement of problems arising during the implementation of the investment cooperation," Pramono affirmed.

However, he added that in executing their additional duties, the ministers will continue to coordinate with the minister of foreign affairs.

"The foreign affairs minister will retain full responsibility in conducting economic diplomacy and organizing matters relating to foreign relations along with ensuring good relations between Indonesia and the friendly countries," he affirmed.

According to Pramono, the foreign affairs minister will also continue to play a vital role in the negotiation process in reaching an agreement on economic cooperation and investment between Indonesia and other countries.

In the meantime, the Investment Coordinating Board (BKPM) is reviewing a regulation on the negative investment list (DNI), a move expected to increase investment in Indonesia.

BKPM Chief Franky Sibarani said on the sidelines of the ASEAN Summit at the Kuala Lumpur Convention Center (KLCC) on Sunday that

at APEC and ASEAN Summits, participants have always raised the issue of how to make the service sector the pillar of economic growth in member states.

"We are reviewing the presidential regulation on DNI particularly how to increase investment in the service sector," Franky said.

Citing an example, he said the service sector still needs much preparations, and regardless of the scoring approaches, the move is in line with the governments effort to turn Indonesia into a production hub to meet needs from ASEAN and Asian countries.

He noted that the BKPM would would facilitate investment plans by both Indonesian state and private companies in other ASEAN countries including Vietnam.

Franky noted that on the sidelines of ASEAN summit meeting in Kualalumpur, President Jokowi told his Vietnamese counterpart Nguyen Tan Dung that he hoped the Vietnamese government would support and facilitate Indonesian investment in Vietnam.

"It is in line with the government plan to take advantage of the implementation of Asean Economic Community," Franky said in a statement issued here on Monday.

He said that while seeking to draw foreign investment into the country, Indonesian companies both state and private companies should also have regional and global ambition.

BKPM estimated that Indonesian investment in Vietnam already reached around US$2 billion including US$500 million in the past five years.

Franky said BKPM would utilize Indonesian representative offices abroad to arrange a meeting between Indonesian companies and prospective partners abroad.

He cited BKPM representative office in Sydney helped facilitate investment by Japfa Comfeed (Santori) cow farm in Australia bought at a price of US$35 million.

Last week, BKPM also facilitated the signing of a memorandum of understanding between Blackmores and PT Kalbe Farma during the visit here by Australian Minister for Investment and Trade Andrew Robb .

"BKPM representative offices have also facilitate investment by Indonesian companies in Singapore for Asean countries, Sydney, Japan, Seoul, New York, London, Taipei and Abu Dhabi," he said.

Based on data at BKPM, there are 31 Indonesian companies investing in Vietnam, in various business areas -- cement, medicines, property, packaging, paint, food, chemicals, and freight forwarding.

"Most of the companies are private companies and are quite popular such as PT Semen Indonesia Tbk, one of the largest cement producers in ASEAN," Franky said.

Franky said Indonesia with per capita income of more than US$3,500 - even up to US$9,000 in Jakarta and Surabaya, is ahead of Vietnam, the Philippines, Laos , Myanmar and Cambodia.(*)

Reporter: Otniel Tamindael
Editor: Heru Purwanto
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