Indonesia is facing big challenges in handling the pandemic, starting from the supply of medicines, oxygen, provision of hospital facilities, and health workers, he pointed out.
But, the government has assured of unwavering efforts in tackling the pandemic step by step, he added.
“This is a challenge for us, so in attracting investors in the near future, I think the condition amid COVID-19 necessitates to be a consideration, so they are sure that we can handle this well,” Pandjaitan highlighted during the 2021 Investor Daily Summit, held online here on Wednesday.
The current public health situation in the country has hugely affected investors' trust, Panjaitan, who is also deputy chief of the COVID-19 Handling and National Economic Recovery Committee (KPC-PEN), noted.
Following a decline in consumption amid a spike in coronavirus cases in Indonesia, investors have begun reconsidering their investment and have adopted a wait-and-watch mode, he noted.
“But, if we handle this COVID optimally, I think they will still have the confidence to invest in Indonesia,” he remarked.
As of today, there has been no decline in investment interest, especially in several strategic industries in East Indonesia, according to Pandjaitan.
The government has prepared some strategic industrial areas, such as North Morowali, Obi Iland, Tanah Kuning, and Weda Bay that are mostly focused on mineral down-streaming sectors, he added.
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Furthermore, it has prepared incentives, like fiscal incentives comprising tax holidays, tax allowances, and free import duties on machinery and equipment imports, he informed.
“The government is keen on assuring that Indonesia is ready to welcome local and foreign investors under any circumstances in the midst of this global pandemic,” he highlighted.
Pandjaitan said that Indonesia has also ratified the Omnibus Law or Job Creation Law along with its derivatives to allay investors’ concerns over long and convoluted licensing processes in Indonesia.
The Omnibus Law aims to simplify the business licensing process through the risk-based licensing method, he explained. Hence, low-risk sectors have to fulfill looser requirements compared to high-risk sectors, he said.
“Through this simplified business licensing, the government is optimistic to be able to improve Indonesia’s investment climate, so that we can attract more investors to Indonesia,” he remarked.
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