Investment Requirements In Indonesia Will Be More Effective, Here's How

Rupiah (Photo: Antara)

JAKARTA - The requirement to invest in Indonesia can be more effective if the party investing in the country.

"With bureaucratic and regulatory downsizing, Indonesia can increase innovation and competitiveness," said economic expert from Guangdong University of Foreign Studies (GDUFS) William Hickey in Guangzhou quoting Antara.

According to the professor of management/economics at GDUFS, Indonesia is actually already in the right direction by cutting several investment rules during President Joko Widodo's 2014-2024 administration.

However, William said there were still some shortcomings in its implementation.

"That is a big concern for investors, especially from abroad," said the man from the United States.

William himself admitted that he had been involved in investment projects in Indonesia several times.

From his experience, he assessed that on several occasions Indonesia has not been maximal in carrying out the spirit of ease of investment requirements.

"I see that it seems difficult to complete the requirements in one action. There are still too many other things involved," said William.

The Indonesian government actually continues to strive to provide convenience for investors who want to invest in Indonesia.

One of them is by issuing the Job Creation Law which makes the investment process simpler and faster.

The government has also integrated investment licensing of all foreign companies in Indonesia to be integrated into the Online Single Submission (OSS) licensing system managed by the Ministry of Investment/BKPM.

In addition, the government provides tax relief, one of which is the tax holiday in the form of a tax exemption from the company's income tax from five to 20 years for the pioneer industry which has a large and strategic investment value.

Most recently, the tax leniency was extended by the Indonesian Ministry of Finance until 2025 because it played a positive role in investment.

The Ministry of Investment (BKPM) noted that the realization of investment in the third quarter of 2024 reached IDR 431.48 trillion or grew 15.24 percent compared to the third quarter of 2023.

In total, investment realization in Indonesia from January to September 2024 is around Rp. 1,261.43 trillion or grew 19.78 percent year on year.