Minister highlights four-pronged approach to boost investment climate

Minister highlights four-pronged approach to boost investment climate

Development of Trans Java toll road near the Batang Integrated Industrial Zone in Central Java. ANTARA PHOTO/Harviyan Perdana Putra/foc./sh

The government realizes the importance of improving the investment climate and competitiveness.
Jakarta (ANTARA) - Coordinating Economic Affairs Minister Airlangga Hartarto spoke at length on four strategies and policies adopted by the government to boost Indonesia’s investment climate.

Hartarto believes that Indonesia has the opportunity to replace China as an investment destination country in the new global supply chain.

"In facing external and internal challenges to grab the opportunity of relocation from China to Southeast Asia, the government realizes the importance of improving the investment climate and competitiveness," he remarked at the HSBC Economic Forum here on Wednesday.

The minister expounded that the first strategy pertained to concluding discussions with the parliament on the job creation bill that targets to create jobs and boost the workers' competencies and welfare.

It is also aimed at improving productivity and investment. Hence, economic transformation, through the job creation bill, is projected to pull Indonesia out of the middle-income trap.

The second strategy targets to determine the investment priority list that encompasses the line of business enjoying tax and non-tax facilities, including export-oriented businesses, import substitution, labor-intensive business, and high-tech and digital-based business.

"The investment priority list is expected to attract not only big investment but also qualified ones that can create jobs," he explained.

The third strategy targets development of the North Java economic corridor to strengthen the industry and boost transportation and logistics connectivity.

The minister noted that the Java economic corridor had contributed 38.7 percent to the national gross domestic product (GDP) and 53.56 percent to the national industry.

Development of the economic corridor in Northern Java is projected to encourage utilization of the industrial area as a center for leveraging economic growth to support investment in the trade and services industry.

It is also expected to boost exports through developing industrial competitiveness and boosting the value chain.

"It integrates the industrial area with the development of transportation and logistics infrastructure systems," he stated.

The fourth strategy aims to develop a super-hub as a production, trade, technology, and finance center.

Currently, Indonesia has five potential super-hub areas: the Bali-Nusa Tenggara corridor, North Sulawesi, Batam-Bintan-Karimun-Tanjung Pinang, the new capital city in East Kalimantan, and the West Java triangle area.
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