"The government will not only focus on investment growth but it will also attract qualified investments that can help balance the economic growth," Lahadalia said in a statement here on Sunday.
Lahadalia on Saturday (June 26) held an investment coordination meeting for Sumatra Region in Padang City of West Sumatra.
The minister said one of the hurdles for investment in some regions is uncertainty in land availability.
"There must be clear rules for sharing the central and regional administrations' tasks because the central government is not able to tackle land issues in regions," he said.
The government has the task to simplify the licensing process to enable business sector to create more jobs.
The ministry has planned to launch the Risk-based Business Licensing (PPBR) through One Single Submission (OSS) on July 2.
Providing the integrated licensing services for business players, including micro, small and medium scale enterprises (MSMEs), is aimed at implementing the Job Creation Law No.11/2020 to accelerate business licensing process in Indonesia, he said.
Meanwhile, West Sumatra Governor Mahyeldi Ansharullah said investments in his province would bring positive impacts as they would create jobs; increase purchasing power; and improve people's welfare.
Regional administrations need to make transformation by offering faster, easier, and cheaper licensing services through the OSS system; providing incentives; and creating favorable business climate, he said.
Data of the Investment Ministry/BKPM reveal that the accumulated value of direct foreign investment (PMA) and domestic investment in Sumatra in the first quarter of 2021 (January to March) has reached Rp52.3 trillion.
In West Sumatra, the value of domestic investment has so far been recorded at Rp1,418.1 billion while that of foreign investment has stood at US$5.8 million.
Realization of investment in Sumatra region during the past five years (2016-2021) has reached Rp767.2 trillion.
The largest value of investment in the island of Sumatra went to Riau Province, namely Rp169.9 trillion, followed by South Sumatra Rp169 trillion, Riau Islands Rp110 trillion, Lampung Rp55.7 trillion, Bengkulu Rp28 trillion, Aceh Rp25.6 trillion, West Sumatera Rp25.5 trillion, Jambi Rp25.2 trillion, and Bangka Belitung Rp18.5 trillion.
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Translator: Ade Irma Junida, Sri Haryati
Editor: Rahmad Nasution
Copyright © ANTARA 2021
