Indonesia needs Rp1,000 trillion in investments for growth

Indonesia needs Rp1,000 trillion in investments for growth

Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia in the conference on Papua Development in Jakarta on Tuesday (Dec 17, 2019). ANTARA/Dewa Wiguna/sh

We are promoting not only the investment but also how to realize it
Jakarta (ANTARA) - Indonesia would need nearly Rp1,000 trillion of investment to boost its economic growth from five to six percent as per the national medium-term development plan (RPJMN) 2020-2024, the Investment Coordinating Board (BKPM) has said. "We are promoting not only the investment but also how to realize it," BKPM Head Bahlil Lahadalia said at a Conference on Papua Development here Tuesday.

Some Rp708 trillion of investment in the country could not yet materialize due to the tedious licensing process, Lahadalia disclosed.

"Even after registering through the OSS (online submission system) and receiving an investment identification number, investors cannot begin operations and have to seek permission from several departments. It could take more than a year," he said.

Therefore, the government wants a centralized licensing system under the BKPM, he continued.

The board also called on foreign investors to work closely with local businessmen to boost the local economy and improve people's welfare.

Investments should create jobs for Indonesian workers. It is closely linked to public consumption which makes a contribution of 56 percent to national economic growth.

"Public purchasing power will spur consumption. Purchasing power will increase when there is income certainty, and this can be materialized with job creation," Lahadalia said, adding that investment could create jobs.

Economic equalization has become the number one priority to materialize investment, the national medium-term development planning 2020-2024 has stated.

It targeted acceleration of development in Papua and West Papua among others.

In West Papua Province, the government has planned four priority projects, namely the development of new ports; restoration of the Sorong Seget Port to ramp up its capacity; development of an industrial zone in Bintuni Bay and special economic zone (KEK) in Sorong, and a gas pipe/LPG terminal of Tangguh LNG Train-3 Project, he said.

In Papua Province, two national strategic projects have been completed such as the revamping of the Sentani Airport in Jayapura and the construction of the Cross Border Post (PLBN).

The two projects are expected to spur local economic growth, he said. (INE)
Related news: Realized investment in Q3 reaches Rp205 trillion: BKPM
Related news: Investment will grow double digits: BKPM chief