Jakarta (ANTARA) - Indonesia's political stability could serve as a magnet for investment, according to Coordinating Minister for Economic Affairs, Airlangga Hartarto.

"Investors must consider Indonesia as a market, base of production, and export center as well," he noted in the Round Table Discussion meeting: Indonesia & Australia Trade and Investment Initiative, as quoted from an official statement received here, Thursday.

The minister affirmed that the Indonesian government is optimistic, albeit still wary of the economic prospects for 2023.

In order to boost economic growth in 2023, the government has implemented various policies starting from the revocation of community activity restrictions (PPKM) to increasing economic activity, downstreaming the industry to increase the added value of local commodities, and structural reforms in the form of the Job Creation Law to provide legal certainty for business actors, he explained.

Regarding the implementation of risk-based business licensing through Online Single Submission (OSS), Hartarto noted that over three million new Business Identification Numbers had been issued.

“We have also prepared a list of investment priorities. Investors investing in our priority industries are entitled to fiscal and non-fiscal incentives. Furthermore, we will continue to optimize the Indonesia Investment Authority (INA) as an alternative to financing economic development," he remarked.

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The minister also encourages to intensify cooperation between Indonesia, as a producer of nickel ore as a core component of batteries, and Australia, which supplies the main component of electric batteries, namely lithium.

"We hope that partnership between Indonesia and Australia can increase our country's competitiveness," he affirmed.

Hartarto noted that Australia has become Indonesia's strategic partner, as in 2022, Australian investment in Indonesia had reached around US$524 million.

To expand market access, Indonesia will continue the trade cooperation through the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA CEPA), he added.

The minister stated that trade and investment between the two countries have immense potential to be increased and developed. Thus, Australia could still explore Indonesia as an investment and trade destination.

“We must strengthen our economic partnership. Indonesia will also remain firm in encouraging partnership and cooperation with the region," he stated.

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Translator: Sanya Dinda S, Resinta S
Editor: Yuni Arisandy Sinaga
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