Economist: Investment Proposal Of IDR 100 Billion For Foreigners, Protect Bali MSMEs

University of Indonesia (UI) economist Ninasapti Triaswati (Between)

JAKARTA - University of Indonesia (UI) economist Ninasapti Triaswati assessed that the proposal of Bali Governor Wayan Koster which requires Foreign Citizens (WNA) to invest IDR 100 billion shows partiality to local micro, small and medium enterprises (MSMEs).

According to Nina, the proposal will indirectly make the government more selective in choosing investors so as not to harm local business actors.

"It is hoped that foreigners who invest in Bali will be more selective. There is a local government's alignment with local MSMEs," Nina told ANTARA in Jakarta, Saturday.

However, Nina has not been able to assess the effectiveness of the proposed policy, because it is still just a discourse.

"The impact on the investment climate can only be measured when the policy is implemented," he added.

It is known, Bali Governor Wayan Koster proposed foreigners who want to establish MSMEs in Bali to invest IDR 100 billion. According to Koster, so far a number of foreign investors can easily open a business through an online single submission (OSS) system or risky business license.

The system is managed directly by the central government with the minimum investment capital to establish foreign investment (PMA) worth IDR 10 billion. Thus, foreign investors can easily establish businesses on land owned by the community.

Based on the records of the Bali local government, there are more than 400 foreigners who have businesses to rent vehicles, building materials, and culinary in Badung Regency. According to Koster, this condition has had a negative impact on the economic development of local communities. Therefore, he considered the need for risk-based licensing system reform so that foreign investors who enter Bali are of higher quality and protect local MSMEs.

The Indonesian House of Representatives is entering a recess period from Friday, October 3 to early November. In the recess period, members of the Indonesian House of Representatives will take advantage of the time to return to their constituency, interact directly with the community, and listen to the various aspirations and problems faced by residents.

The process of absorbing the aspirations of the people in the regions is part of the integral of the legislator's responsibility in representing the interests of the people.

During the recess, members of the DPR RI can hold various activities such as meetings with the community, public dialogue, visits to various locations, and listen to constructive complaints and ideas from various sectors of society.

Through a series of recess activities, the DPR RI can understand more deeply the dynamics of social, economic, and political in each of its constituencies.

In addition, absorption of the aspirations of the people is also an opportunity for members of the DPR RI to explain the various policies that have been generated at the national level and get direct feedback from the public.