Anticipate Global Gejolak In 2023, The Government Must Focus On Policy For Investment Genjots

JAKARTA - Economy expert from Gadjah Mada University (UGM) Fahmyani assesses that the government must focus on policies to boost investment, especially foreign investment.

This was done to maintain Indonesia's economic growth in the midst of global turmoil this year.

"I think to maintain economic growth, like it or not, foreign investment must enter Indonesia. So I think the focus is on how to increase that investment," said FahmyPLiki, Wednesday, January 4.

Fahmy assessed that Indonesia's economic structure is still quite strong in undergoing 2023 even though it is predicted to have many challenges.

However, Indonesia's economy will be faced with world economic conditions that are still struggling with projections for economic slowdown, the threat of a food and energy crisis, to the shadow of a global recession.

I see that the foundation of Indonesia's economic structure is relatively strong. Economic growth, for example, next year is estimated at 5.2 percent, inflation is below double digits. This means that with current capital, in the future I am still confident and optimistic that Indonesia's economic prospects will be very good," he said.

However, continued Fahmy, the government also needs to provide fiscal incentives to attract investors. According to Fahmy, the government can choose to invest in the mining downstream sector.

"I think what Jokowi started with prohibiting exports of nickel, bauxite, requires downstreaming. I think that should be the focus, so that Jokowi's policy of banning exports can be followed up to increase added value," he said.

In addition, he continued, investment is also able to open up many jobs. This will greatly help the community's economy. According to Fahmi, jobs can be opened in large quantities if there are factories operating in Indonesia. So there needs to be fiscal incentives so that they are interested in investing in Indonesia.

"So the investment earlier contributed to economic growth, opened up jobs, this is a critical thing that the government must prioritize," he said.

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Meanwhile, the Executive Director of CELIOS, Bhima Yudhistira, said that next year's economic growth will be at 4.5 percent.

The resilience of the domestic economy is tested, especially public consumption, inflation and the investment climate in the political year 2023-2024.

The public will first focus on meeting basic needs, especially with the threat of a global recession. Export performance is also affected by the slowdown in 3 main regions, namely Europe, the US and China. Where investment realization in the political year tends to be full of challenges, especially those from policy uncertainty," said Bhima.

Bhima said that so that Indonesia would not be dragged into a global recession, there were several things that could be done. One of them is tax relaxation.

"Tax relaxation, especially VAT from 10 percent, is lowered to 7-8 percent to maintain household consumption levels and turnover for business actors, especially retailers who are starting to recover," explained Bhima.

Then, said Bhima, social assistance (bansos) and subsidies will continue, especially for affected communities.

"Providing public transportation subsidies and adding a large-scale fleet so that people who are burdened with rising fuel prices can switch from private vehicles to public transportation," he said.

Then, continued Bhima, ahead of the month of Ramadan 1444 H/2023 M, the government must also anticipate prices. Breaking the food supply chain that is too long.

"At the same time increasing the allocation of fertilizer subsidies to prevent volatility in food prices, especially ahead of the upcoming Ramadan and Eid al-Fitr 1444 H/2023 AD," concluded Bhima.

Previously, President Joko Widodo expressed his optimism about the condition of the Indonesian economy, as did Coordinating Minister for Economic Affairs Airlangga Hartarto and Minister of Finance Sri Mulyani.

"Let's welcome 2023 with gratitude, enthusiasm and optimism to become a better individual citizen and community of the nation, more prosperous, more united and harmonious, and more advanced and blessed," said Airlangga.