The Government Must Maintain The Legal Certainty Of Investors Who Will Enter Indonesia

Illustration. (Photo: Doc. Antara)

JAKARTA - Executive Director of the Center for Strategic and International Studies (CSIS) Yose Rizal Damuri is optimistic that investment will enter Indonesia in 2023. Because according to him, Indonesia is still the attraction of investors.

"In the future, our investment will definitely enter. Because we have a fairly large market. Then we are still rich in resources and there is still labor," said Yose in Jakarta, Friday, December 16.

Yose assessed that investors will consider several things to enter Indonesia. For example, ease of investment, ease of operation, and legal certainty.

Regarding operational convenience, Yose highlighted the rules for the Domestic Component Level (TKDN). According to him, the government wants to increase TKDN in a very instant sometimes, namely by prohibiting imports of parts and components that are actually still needed.

"Sometimes it is considered that in Indonesia there are raw materials so that they cannot be imported again. Even though the specifications of the parts and components are a bit different from what is needed by this new investor. That is a consideration. I think the TKDN problem will be quite a problem," explained Yose.

Meanwhile, Yose continued, legal certainty is also a separate note. When investors have started business operations in Indonesia, he said, legal issues cannot be avoided. Therefore, they will really consider aspects of legal certainty.

"This is beyond operational. If the operation is good, of course there must be legal certainty, because when operating there will definitely be disputes or disputes resolved in the realm of law. If the legal realm is uncertain, investors will have difficulties there," he said.

Even so, Yose noted, Indonesia is known to have many business regulations that have changed rapidly. Even though changes in regulations will quickly disrupt the business process.

"So soon the changes will certainly reduce legal uncertainty," he added.

Therefore, the government must guarantee the legal certainty of investors who will enter Indonesia. Yose suggested that there is an agency specifically tasked with checking and synchronizing various regulations related to business in Indonesia.

"What we need is a clearing house. There is one body, whether the Coordinating Ministry for the Economy or what, which has the capacity to review these new regulations so that the ministry has procedures, SOPs, before issuing regulations, considering the bad good impacts," he said.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto, stated the investment commitment that Indonesia received from the G20 Presidency.

"In 2023, the government will follow up on investment commitments made to Indonesia as a result of the G20 Summit in Bali, including the Just Energy Transition Partnership of 20 billion US dollars for clean energy in Indonesia," said Airlangga.

In addition, Airlangga also mentioned that there is a Asia Zero Emission Community with a commitment to providing US $ 500 million for Indonesia and Partnership for Global Infrastructure and Investment in the form of US $ billion in funding from G7 countries in the form of loans and grants.

"The funds will be used for the development of sustainable infrastructure projects in developing countries," said Airlangga.