The key to attracting more foreign investment is developing infrastructure and improving the ease of doing business index, he remarked during a national gathering themed "Economic Self Reliance for Progressive Indonesia" here on Saturday.
The government has enthusiastically boosted the development of infrastructure by allocating Rp400 trillion for infrastructure projects every year, he noted.
"To make investors enthusiastic, (the government) has issued 16 packages. However, I think the number is not sufficient. The government should monitor whether the 16 packages are effective and the presence of any problems on the field," he remarked.
If the 16 economic policy packages are implemented effectively, Indonesia will slowly but surely shift its economic structure, from consumption-based to investment-driven economy, he stated.
"We must change the economic structure, from a consumption-based to investment-driven economy," he noted.
In the long run, the country`s export performance should also be improved and shift from commodity-based to manufactured goods-oriented, he explained.
He recalled when the global commodity prices were high a decade ago, the value of Indonesia`s exports were quite high. However, the commodity prices have not recovered from a drastic shortfall since the global economic meltdown began.
"Hence, we should not be highly dependent on commodity products. We should diversify our exports by increasing the proportion of manufactured goods," he noted.
The 16 economic policy packages that President Joko Widodo issued more than a year after taking office deal with the competitiveness of the national industry, streamlining of export procedures, elimination of business barriers, social insurance and improvement of public welfare, improving industrial climate through tax incentives, and deregulation of the sharia-compliant banking industry, among others.
Reporting by Citro Atmoko
Editing by Suharto
Reporter: Antara
Editor: Suharto
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