"The growth rate was supported by rising investment and strong private consumption. Investment grew to 7.95 percent, up from the previous growth of 7.27 percent," Soesatyo noted in a written statement on Tuesday.
Soesatyo explained that the overall investment in Indonesia increased, such as building investment rose due to infrastructure development, especially the construction of power plants in various regions.
In addition, the government is currently also reviewing the provision of asset tax incentives to local companies that set up new businesses in cooperation with foreign capital, he stated.
"The aim is for PMA (foreign investment) to enter and help close the current account deficit," the Golkar Party politician remarked.
He also argued that the demand for capital goods and raw materials, such as those from private consumers, also spurred investment growth in the country.
Regarding investment, in a separate place, Kalla explained that the relaxation of the Negative Investment List (DNI) would not threaten the existence of domestic micro, small, and medium enterprises (MSMEs) with foreign investment.
"No, it will not threaten. It is just a miscommunication; actually it does not mean that. I do not know the mistake, because it was discussed in coordination at the Coordinating Ministry for Economic Affairs," Kalla told reporters at the Jakarta Vice President`s Office on Tuesday (Nov 27).
The vice president added that by reducing the business sector in the DNI, it does not mean that all foreign investment can directly enter the domestic business sector, especially Indonesian MSMEs.
DNI relaxation is regulated under the legal umbrella of government regulations, while there are still laws related to MSMEs that must be obeyed before foreign investment enters the country.
"Yes it is not easy for that, because it is not allowed in the law. It has been removed from the list (DNI); however, the laws still have to be in the country," he added.
In addition to increasing foreign investment into the country, Kalla pointed that minimizing business fields in the DNI could also expand employment and increase tax revenues in Indonesia.
Reporter: Antara
Editor: Andi Abdussalam
Copyright © ANTARA 2018
