Equal investment access for MSME cooperatives, large investors assured

Equal investment access for MSME cooperatives, large investors assured

President Joko Widodo. (ANTARA/HO-Press Bureau of the Presidential Secretariat)

Jakarta (ANTARA) - President Joko Widodo (Jokowi) has assured that the Indonesian government will ensure both MSME-based investors and cooperatives as well as large-value investors have equal access to investment opportunities in the country.

Not just large investors and foreign investors, investors from MSMEs and cooperatives also create job opportunities for the community and play a role in advancing the nation's economy, the President said at the Investor Daily Summit, which he joined virtually from Jakarta on Tuesday.

Therefore, access and freedom to invest must also be given to MSME-based investors and cooperatives.

"I want to underline that investment should not only be seen as (favoring) big investors. The government will also give equal access to MSMEs and cooperatives," Widodo said.

The government continues to encourage ease of investment for various parties, he added. It has formed an Investment Acceleration Task Force, which is based on Presidential Decree No. 11 of 2021, he continued.

"This task force has been tasked with solving problems faced by business actors and encouraging cooperation between large investors and MSMEs," President elaborated.

The risk-based online single submission system, which serves as a reference for all policymakers to issue permits, has been implemented for the convenience of MSMEs and cooperatives, he pointed out.

"This is in the context of (the provision of) electronic, fast, and efficient business licensing," Widodo stated.

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The ease of licensing and business, he noted, has been accommodated in the Job Creation Law. The Omnibus Law is expected to provide protection to MSMEs and cooperatives, in addition to facilitating licensing, he said.

"The simplification of business licensing at the center and regions, the application of risk-based business permits, and various other incentives are expected to increase the interest of investors, especially from within the country," he added.

Earlier, Finance Minister Sri Mulyani Indrawati had highlighted that the realization of investment financing had soared over four times to reach 25.6 trillion Indonesian rupiahs in the first half of 2021 from Rp6 trillion during the corresponding period of last year.

"The realization of investment financing in the first semester had reached Rp25.6 trillion, a drastic increase as compared to that in 2020," the minister stated at a working meeting with the Budget Committee of the House of Representatives (DPR) in Jakarta early this week.

Investment financing comprised Rp15.6 trillion in investment for public service agencies (BLU) and Rp10 trillion in government investment for regions through national economic recovery (PEN) loans, she informed.

"Once again, this is below the line of state debts, but it can help all elements in regions," Indrawati stressed.

The financing was channeled to the BLU of the Housing Finance Fund Management Center (PPDPP) for the construction of 93,792 units out of the targeted 157,500 houses under a house ownership loan (KPR) scheme, she added.  

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