Sri Mulyani should channel more funding to boost investment: Minister

Sri Mulyani should channel more funding to boost investment: Minister

Screenshot of Investment Minister Bahlil Lahadalia in Lahadalia at the 2022 Investment National Coordination Meeting in Jakarta on Wednesday, November 30, 2022. (ANTARA/Youtube Kementerian Investasi/BKPM)

Jakarta (ANTARA) - Investment Minister Bahlil Lahadalia called on Finance Minister Sri Mulyani to increase the allocation of special funds for the One-Stop Investment and Services Office (DPMPTSP).

According to Lahadalia, such initiative would encourage the office, so that the regions could increase investment that would ultimately have an impact on economic growth.

"In line with directives from the finance minister, she said that if economic growth is above 5.3 percent, then our investment growth must be six percent. Now, it is only five percent. Ma'am, six percent will be achieved if the special fund is added again. It will definitely work. They will definitely work, since they are more enthusiastic," Lahadalia stated at the 2022 Investment National Coordination Meeting here on Wednesday.

Investment is one of the biggest factors to driving Indonesia's economic growth in the third quarter of 2022, just after consumption. Based on data from Statistics Indonesia, household consumption grew 5.39 percent yoy, taking up a segment of 50.38 percent, while investment grew 4.96 percent and contributed 28.55 percent.

In 2022, investment is targeted to reach Rp1,200 trillion in order to pursue economic growth of above five percent.

"We promise before the president, on the recommendation of the DPMPTSP, God willing, this year, Rp1,200 trillion will be achieved," he remarked.

As per records of the Investment Coordinating Board, until September 2022, investment realization had reached Rp894 trillion, or 74.4 percent of the target.

"Apologies, DPMPTSP is at the foremost of investors' management, yet this office is made number three in districts, cities, and provinces. (This is) despite the finance minister and the president having directed investment to be increased, especially since our budget deficit has fallen below three percent," he remarked.

Lahadalia also expressed gratitude since in the last two years, the office had received special fund allocations. As the first area of attention in dealing with investments, the investment department in the regional scope must receive attention, he remarked.

"Mr. President, please (consider) regarding the special allocation fund request earlier, so that they can return to the regions with a smile," he concluded.

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