“Racketeering adds 5–30 percent to variable costs. It’s not just perpetrated by community groups, but also by bureaucrats and state officials,” Todotua said during a discussion titled "Will 2025 Investment Realization Achieve the Target?" in Jakarta on Wednesday.
Despite government incentives such as tax holidays, allowances, and deductions, he emphasized that cross-sector collaboration is essential to eliminate such practices and improve Indonesia’s appeal to investors.
“If these costs persist, we all lose,” he added.
He also noted the government’s efforts to strengthen human resources and strategically manage natural resources to support domestic and global economic growth.
In light of planned demonstrations on Thursday (Aug. 28), Todotua urged the public to maintain trust in the government, warning that unrest could undermine investor confidence.
“So, put your trust in the government,” he said.
Separately, Minister of Investment Rosan Perkasa Roeslani reported that Q2 investment realization reached Rp477.7 trillion —an 11.5 percent increase from Rp428.4 trillion in the same period last year.
Foreign direct investment (PMA) contributed Rp202.2 trillion, while domestic investment (PMDN) accounted for Rp275.5 trillion.
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Translator: Imamatul Silfia, Aditya Eko Sigit Wicaksono
Editor: Yuni Arisandy Sinaga
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