BKPM Focuses On Attracting Singaporean Interests To Investigate Capital In Indonesia For Sustainable Business

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Investment/Investment Coordinating Agency (BKPM) has a focus on Indonesia in terms of attracting foreign investors (PMA), especially Singapore as the target of PMA in a sustainable business.

Deputy for Investment Promotion at the Ministry of Investment Nurul Ichwan said that Singapore has high potential for sustainable business. This is reinforced by the fact that Singapore is the leading country that focuses on green investment in Southeast Asia,

"Their ecosystem is not only in the real sector, they have even prepared to play a role there. So if they have a chance, they are interested in entering Indonesia," said Nurul in a written statement in Jakarta, quoted from Antara, Friday, December 8.

Based on BKPM data, the value of Singapore's investment realization in Indonesia always increases every year. In 2021, Singapore's total investment realization value was recorded at 9.3 billion US dollars. Linear with this, in 2022 the value increased to 13.2 billion US dollars and and and the third quarter of 2023 was recorded at 12.1 billion US dollars.

Especially for the new and renewable energy business (EBT), Singapore's total investment in Indonesia reached 6 billion dollars in the period 2018-September 2023.

Nurul explained that this figure will continue to grow until the end of December 2023 optimistically. This is also in line with business and investment concentrations that have begun to shift to a sustainable direction.

Furthermore, Nurul said that Singapore has the latest technology in the field of EBT. However, the country does not have sufficient land to develop solar panels.

"Indonesia as the closest neighboring country has the potential to be able to supply it by building solar farming in Indonesia, which then the electricity can be exported to Singapore so that it becomes green electricity," said Nurul.

Nurul also added that Indonesia is part of Singapore to invest. One of the steps from several strategies is that Indonesia will expand its business activities by building industrial estates in Indonesia, both Batam and East Java.

Meanwhile, Bank Mandiri Chief of Economist Andry Asmoro stated that EBT in Indonesia has enormous potential, especially in the field of diesel, wind and geothermal. In addition, sustainable transportation such as trains and electric buses is also able to invite PMA to come to Indonesia.

Outside of this sector, Indonesia also has the potential for sustainable investment in other sectors such as: agriculture, oil palm plantations, and sustainable tourism.

"The management of waste, Indonesia also has large waste, so it requires sustainable investment. So there is an investment there that is attractive to other countries," said Andry.

Andri also added that in terms of domestic entrepreneurs, Indonesia is ready to switch to sustainable business. The results of a survey conducted by Bank Mandiri in 2023, 92 percent of companies admit that they will integrate sustainable practice in their business.

Then, 53 percent believe that business practices that are in accordance with IFG will be a top priority. These data show that players or business people in Indonesia already have high awareness and are ready for the sustainable business concept. This proves that demand for sustainable products is also increasing, even though the price is premium.