And it's not easy, for those who think they will not be as strong as they used to be
Jakarta (ANTARA) - The Investment Ministry has said that the biggest challenge to improving the national investment climate is the mindset, which needs to be made more welcoming and supported by a better investment licensing culture.

In general, improvements to the investment climate have been accommodated through the Omnibus Job Creation Law, deputy for investment planning at the ministry, Indra Darmawan, said at a webinar entitled “Expanding Investment Amid Geopolitical Conflicts,” on Monday.

"The challenge of implementing the Omnibus Law is the technicality, but there is software to make it is already latest version. But the biggest challenge is the mindset. How to change the culture to be more serving, open, to a better licensing system," he added.

Darmawan said that bringing this change is the biggest challenge because it would lead to a number of institutions losing their authority.

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"And it's not easy, for those who think they will not be as strong as they used to be," he added.

"If some are not too motivated to carry out the initiative, that will be a challenge in and of itself. I think that is the biggest challenge that will carry over to 2023," he said.

According to Bank Mandiri chief economist Andry Asmoro, the growth in investment in recent years has shown that the investment climate in Indonesia has continued to improve.

In fact, foreign investment in the third quarter of 2022 reached Rp168.9 trillion (US$10.7 billion), an increase of 63.6 percent year on year.

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"FDI (foreign direct investment) is breaking a record; this is what we have to understand. Without improvement in the investment climate, I think FDI (investors) will also question when to invest in Indonesia," he pointed out.

Asmoro said that despite many challenges, Indonesia is still one of the countries with good investment growth, which is a sign that its investment climate is improving.

The investor confidence has come from the ministry's initiatives for overcoming investment problems in practice, including improving coordination between the center and the regions, he noted.

"Not only narrative but also directly addressing investment climate issues in the regions. Not only at the micro and national levels but also on coordinating with local governments and local areas," he added.

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Translator: Ade Irma J, Mecca Yumna
Editor: Fardah Assegaf
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