Jakarta (ANTARA) - Minister of Investment and Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia has said that the government will revoke some investment incentives following increasing investment outside Java.

The government will be selective in providing additional revenue for projects, especially after development efforts start to show a significant impact, he informed.

"For example, the construction of a nickel pig iron (NPI) with an added value of less than 50 percent will not be receiving a tax holiday from the government. We have to be selective in order to provide additional income to the state," Lahadalia said during a presentation on investment realization during the second quarter, in Jakarta on Friday.

According to him, the same thing will also apply to other sectors, including those related to development outside Java.

In line with President Joko Widodo's direction to encourage Indonesia-centric development, development was also pushed outside Java with additional incentives offered to attract investment, he noted.

Since the third quarter of 2020, investment realization outside Java has become stable, surpassing investment realization within Java, Lahadalia said.

As of the second quarter of 2023, investment realization outside Java reached Rp182 trillion, accounting for 52 percent of the total investment realization of Rp349.8 trillion during the April–June 2023 period, while investment realization in Java reached Rp167.8 trillion or 48 percent of the total investment realization, he added.

Cumulatively, during January–June 2023, investment realization outside Java reached Rp354.9 trillion (52.3 percent), while investment realization in Java reached Rp323.8 trillion (47.7 percent), he said.

"Since the third quarter of 2020, or for 12 consecutive quarters, there has been more investment outside Java. This shows that the results of the infrastructure development carried out by President Joko Widodo and former Vice President Jusuf Kalla are now being felt. The development progress in Indonesia cannot be done within a night and needs measurable methods," he added.

Earlier, the minister said that the government had provided special incentives for investments outside Java. This was done to encourage uniform distribution of investment and its economic impact outside Java.

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Translator: Ade Irma J, Resinta S
Editor: Azis Kurmala
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