"Our focus in 2012 will be on spurring investment growth, either in the private or public sector by optimizing capital spending," acting chief of the ministry`s fiscal policy board Bambang Brodjonegoro said here on Monday.
To encourage private investment, the government must maintain the conducive investment climate by improving industrial relations between employers and employees, assisting investors in clearing land and ensuring business certainty, he said.
"What we must pay attention to are industrial relations, investment climate in general, and legal certainty from local governments. If investment permits have been issued, then local governments should not do something harmful," he said.
He said the government must take advantage of the momentum of investment grade to attract more investment.
In addition, he said the government would make an optimum effort to grant fiscal incentives to investors wishing to engage in the downstream industry and provide fiscal stimulus to boost the economy.
Investment would play a greater role in boosting the economic growth in 2012 now that the country`s exports were expected to fall this year, he said.
The other engine of the economic growth in 2012 would be domestic consumption, he said.
Finance Minister Agus Martowardojo said earlier in the day the domestic economic growth in 2011 was mostly driven by investment which grew by 8.0 percent.
Therefore, he said the government would continue to increase investment growth up to around 10 percent to achieve the target of economic growth target of 6.7 percent for 2012.
The minister said "it is more important for us now to ensure that government can increase private investment in view of its role in the economy."
The Central Statistics Agency (BPS) reported on Monday the Indonesian economy expanded 6.5 percent in 2011. (*)
Editor: Kunto Wibisono
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