Apindo Boss Reveals Investment In The Green Economy Sector Is Still Minimal

Chairman of the Indonesian Employers' Association (Apindo) Shinta Kamdani. (Photo: Doc. ANTARA)

JAKARTA - The Indonesian Employers' Association (Apindo) assesses that several sectors in the country still do not get investment, especially in the green economy sector.

Chairman of the Indonesian Employers' Association (Apindo) Shinta Kamdani said that several sectors in Indonesia still do not get investment or under investment, especially in the green economy sector.

"Currently, under-investment is sectors related to the green sector," Shinta told reporters, Monday, July 29.

According to Shinta, the potential for financing in the green sector is fairly high and many investors in the green sector want to enter the sector.

"Although the potential is very large, it may be more encouraged because it is very limited," he explained

Shinta explained that Apindo projects that the potential of the green economy sector in Indonesia can reach IDR 593 trillion to IDR 638 trillion by 2030.

In addition, Shinta said that the green economy sector can create jobs 7-10 times more with conventional investment.

According to Shinta, the downstream sector also encourages investment realization. However, so that downstreaming is not only carried out on minerals but also other sectors.

"Also downstream agriculture, fisheries, and others should be our concern," he said.

Previously, the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia revealed that the realization of investment in the first meter of 2024 reached IDR 829.9 trillion. This figure increased 22.3 percent compared to the same period the previous year.

Referring to data from the Ministry of Investment, during that period the most disbursed was foreign investment (PMA) with a nominal value of IDR 421.7 trillion, an increase of 16.1 percent on an annual basis.

Meanwhile, domestic investment (PMDN), continued Bahlil, reached Rp408.2 trillion, an increase of 29.1 percent from the same period the previous year.

"Alhamdulillah, one semester now reaches Rp. 829.9 trillion, growing 22.3 percent. With a target of Rp. 1,650 trillion, now we have 50.3 percent. So whoever is my manager, he just has to find 49.7 percent," Bahlil said at the Investment Realization Press Conference in Quarter II and Semester I 2024, at the Ministry of Investment office, Jakarta, Monday, July 29.

Bahlil revealed, with the realization of the investment, the Ministry of Investment noted that 1,225,042 workers had been absorbed throughout the first semester of 2024.

He said that the realization of investment in the first semester of 2024 was the most targeting areas outside Java.

The portion reaches 50.2 percent outside Java and 49.8 percent in Java.

In detail, investment outside Java reached IDR 416.2 trillion.

This figure increased by 17.3 percent from the same period the previous year.

Meanwhile, continued Bahlil, investment in Java reached IDR 413.7 trillion. This figure increased by 27.8 percent from the first semester of 2023.

Java and outside Java in 2023, in the first semester of 2023 it was 52.3 percent. Now 50.2 percent, we have to run this again, especially toll roads in Java, West Java and Central Java, East Java, DIY has quite an extraordinary impact on considerations than investors. Because entering the logistics cost is much cheaper," he explained.