Jokowi Spray Luhut About Investment, Why?

JAKARTA - President Joko Widodo (Jokowi) gave a warning to the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan regarding the target of investment realization in Indonesia. For this year, Jokowi has set Indonesia's investment growth target not to drop more than minus 5 percent.

"In the second quarter of 2020, the contraction of Indonesia's investment rate reached 8.6 percent. I ask the Coordinating Minister for Marves. Try to really do it, if you can't add it, don't let the minus be above 5 percent. The key is there," Jokowi said when opening a limited meeting at the Merdeka Palace, Monday 24 August.

Jokowi continued, the investment rate is important in the midst of the current COVID-19 virus pandemic. This is because the investment rate can boost economic growth amid sluggish domestic consumption growth.

Furthermore, according to Jokowi, the driving factors for the economy, such as exports, are still not reliable. In addition, people's purchasing power is still not as normal as before.

"Tax revenue is also still stagnant. This shows that the purchasing power of the community is stuck, because we are constrained by, for example, restaurants only open 50 percent, then tourist attractions and hotels have not fully returned to normal activities," said Jokowi.

Meanwhile, there is great potential in the investment sector, which reaches Rp. 213 trillion. According to Jokowi, the investment realization target must really be realized, in order to be able to boost economic growth.

"Last night I talked a lot with BKPM. Pak Bahlil has already agreed to Rp. 213 trillion," said President Jokowi.

Economic growth experienced a strong contraction of up to -5.32% (yoy), the main cause of which was the implementation of the PSBB from March to May 2020. Public demand fell so that many sectors were severely affected. pic.twitter.com/hd9oY1I0M3

- Fiscal Policy Agency (@BKFKemenkeu) August 7, 2020

The COVID-19 pandemic has put pressure on the Indonesian economy. In the April-June 2020 period, Indonesia's economic growth contracted by 5.32 percent compared to the same period the previous year.