Airlangga Reveals The Government's Commitment To Creating A Conducive Investment

Coordinating Minister for Economic Affairs (Menko) Airlangga Hartarto. (Photo: Doc. ANTARA)

JAKARTA - The government continues to strive to increase economic growth achievements to reach 8 percent through various strategic partnerships with stakeholders.

In line with this, the Coordinating Minister for Economic Affairs Airlangga Hartarto received a visit from the European Union Delegation - ASEAN Business Council (EU-ABC), to discuss the outlook for Indonesia's economic policy in 2025 and the investment climate for business actors from the European Union in Indonesia.

The meeting also discussed Indonesia's accession process in OECD, export and import policies as well as Indonesian TKDN, the health and pharmaceutical sectors, increasing economic competitiveness, digital economy, and tracing of supply chains and local industries.

On the occasion, Chairman of the EU delegation Chairman of The EU-ASEAN Business Council (EU-ABC) Jens Röbbert expressed optimism for the new government under the leadership of President Prabowo Subianto, who is considered to have a high target of encouraging economic growth.

"We see a strong commitment from the Government of Indonesia in creating a more conducive investment environment, which is certainly a common hope for investors to support economic transformation," he said in his statement, Thursday, February 6.

Jens R\"ubbert said he was optimistic that this was reflected in the large number of delegates who were committed to attending this meeting, namely 130 delegates who were also present in Indonesia, 50 of whom were present in this room representing 49 leading business organizations from Europe.

"This number is the largest in more than a decade, showing the high confidence of the European business community in Indonesia's potential as a strategic economic partner," he said.

Then, Coordinating Minister for Economic Affairs Airlangga Hartarto said that Indonesia is fundamentally trying to create new investments and increase the investment climate to support strong macroeconomic stability.

Airlangga also added that Indonesia's economic growth last year reached 5.03 percent (ctc), reflecting the high confidence of the new government under President Prabowo Subianto in the potential for economic growth based on a solid foundation.

In line with this, within 100 working days of the Prabowo-Gibran Government, a number of strategic economic packages have been launched as an effort to accelerate the transformation of the national economy.

The meeting also stated that Indonesia and the European Union were strategic business partners, which were marked by a trend of Indonesia's trade value surplus in 5 (five) consecutive years (2020-2024) and an increase in the value of foreign investment (PMA) by 5 percent for the third quarter of 2024 (yoy).

In addition, Airlangga also conveyed to entrepreneurs who are members of the EU-ABC that the Indonesian government has created a more conducive investment environment, especially in special economic zones and industrial areas.

The necessary licensing and facilities processes are available, so that business actors can immediately settle and develop. Apart from Tax Holiday and Tax Allowance, the available fiscal facilities are a super deduction tax of 300 percent for research and development activities in the fields of food, pharmaceuticals, cosmetics, medical devices and others," explained Coordinating Minister Airlangga.

Responding to this, the EU-ABC delegation appreciates Indonesia's strategic role in the international world and appreciates Indonesia's investment climate which is getting better in development in the future.

On the other hand, the EU-ABC Delegation expressed its support for efforts to accelerate the completion of Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) in order to increase trade, investment and industrial cooperation between the two parties.

The negotiations, which have been going on for nine years, are expected to be completed in the first quarter of 2025, so as to increase the real economic growth of Indonesia and the European Union.

Airlangga said the Indonesian government was committed to completing IEU-CEPA Negotiations in the first quarter of this year.