The global challenges are in the form of the COVID-19 pandemic, declined liquidity due to tapering off, and the threats of climate change, he pointed out.
"While facing COVID-19, we cannot avoid its uncertainties, but we can prepare the Indonesian economy to withstand these economic pressures," Pandjaitan stated during the Indonesia Economic Outlook 2022 here on Tuesday.
According to the minister, economic recovery and transformation must be conducted by taking into account the increasing global problems.
In terms of the health sector, COVID-19 has shown that reformation in the national health system is crucial, especially during a spike in Delta cases, when the country had faced difficulties in meeting the requirement for hospital beds, pharmaceutical goods, medical devices, and health workers.
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Pandjaitan noted that several countries were currently focused on their own needs, as they did not want to get caught up in the supremacy of China and India, as the centers of pharmaceutical production.
In the commodity sector, the Indonesian government continues to prioritize the industrial downstreaming concept to not solely depend on the export of raw materials. The downstreaming concept has been applied in palm oil, nickel ore, aluminum and petrochemical commodities, he highlighted.
Meanwhile, he affirmed that for tackling the problems of climate change, the government had targeted the Nationally Determined Contribution (NDC) by issuing Presidential Regulation No. 98 of 2021 to reduce the carbon emission rates.
In terms of regulations, the Indonesian government has made the Job Creation Law effective that eases the process of investment through risk-based licensing, he stated.
Pandjaitan also ensured that the government will continue to prepare attractive incentive schemes to bolster domestic and foreign investment.
"I am optimistic that investors would not hesitate to contact me when they face difficulties in investing," he added.
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Translator: Ade J, Kenzu T
Editor: Suharto
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