SMEs invested significantly during COVID-19 pandemic: BKPM spokesman

SMEs invested significantly during COVID-19 pandemic: BKPM spokesman

Spokesperson of the Investment Coordinating Board (BKPM) Tina Talisa (right) in an online discussion from Jakarta, Friday (17/7/2020). ANTARA/Mentari Dwi Gayati/ac.

It demonstrates that investments do not always mean larger sums, and they do not always come from foreign parties
Jakarta (ANTARA) - Investment Coordinating Board (BKPM) spokesperson Tina Talisa pointed to significant amounts of investments made by small and medium enterprises (SMEs) amid the COVID-19 pandemic.

Talisa believed that larger sums of investments are often assumed to have come from foreign businesses. However, BKPM's Online Single Submission (OSS) System recorded a larger percentage of investments made by SMEs that were submitting their business license numbers.

"In the OSS data, the larger percentage (of investments) came from the micro, small, and medium enterprises. From what we see, from June 1 up until June 30, some 57 thousand business license numbers were submitted, of which over 50 percent, or some 37 thousand, were of small and medium businesses. It demonstrates that investments do not always mean larger sums, and they do not always come from foreign parties," the BKPM spokesperson remarked during an online discussion held from Jakarta on Friday.

Talisa explained that during the pandemic, SMEs in the food and medical supplies sectors always outperformed the percentage from the commercial operational licensing sector.

Before that, the trade sector had always dominated, thereby translating to the fact that business sector players were scrupulous in seizing opportunities during the COVID-19 pandemic.

It was also apparent from the greater affordability, accessibility, and availability of masks, hand sanitizers, and protective gears for healthcare workers.

Talisa further pointed out that the COVID-19 pandemic had led to a decline in foreign direct investments, thereby reflecting the direct impact of the disease on the sector. However, domestic investments increased and were able to sustain and balance the numbers.

The BKPM recorded investment realization in the first quarter of 2020 to have reached Rp201.7 trillion, indicative of an eight-percent growth, from Rp195.1 trillion in the previous year.

In comparison with the January-March 2019 period, foreign investment had plummeted by 9.2 percent, from Rp107.9 trillion to Rp98.3 trillion this year.  

In the meantime, domestic investments increased by 29.3 percent, from Rp112.7 trillion to Rp87.2 trillion.

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