"This adds to the government's efforts to improve the investment climate by upgrading from agency to ministry. It will surely be perceived as a positive sentiment for investors," Rendy noted in Jakarta on Saturday.
The economist believes that the positive sentiment will also depend on the extent to which the Ministry of Investment will conduct key tasks and functions.
The House of Representatives’ Plenary Meeting on Friday had earlier approved Presidential Letter Number R-14 / Pres / 03/2021 on consideration of changing ministries that had been earlier discussed at the Consultation Meeting for the Replacement of the House Deliberative Body on April 8, 2021.
At the meeting, an agreement was reached on the formation of the Ministry of Investment to increase funding capitalization and job creation, among others.
"The Ministry of Investment can encourage investment, especially in the manufacturing sector. This is an effort to encourage higher economic growth," he stated.
Data of the Investment Coordinating Board (BKPM) from January to December 2020 found that industrial investment clocked a double-digit growth amounting to Rp272.9 trillion or contributed 33 percent of the total national investment reaching Rp826.3 trillion.
This year, the government targets investment realization in the manufacturing industry sector to increase by Rp323.56 trillion. This optimism is supported by the implementation of the Job Creation Law, post-vaccination global economic recovery, and the establishment of the Ministry of Investment.
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