President Jokowi Affirms Investment Is The Solution To Unemployment

President Jokowi accompanied by Minister of Finance Sri Mulyani, and Minister of Investment/Head of BKPM Bahlil Lahadalia when inaugurating the Launch of the Risk-Based Online Single Submission (OSS) System (Photo: BKPM Youtube screenshot)

JAKARTA - President Joko Widodo (Jokowi) said that investment is an important key in solving employment problems in Indonesia. According to him, investment has a great opportunity to create jobs in the country.

"Investment can open up as many job opportunities as possible, so that it becomes a solution to the problem of increasing unemployment," he said when inaugurating the Launch of the Risk-Based Online Single Submission (OSS) System which was broadcast virtually on Monday, August 9.

The President added that the pandemic situation currently faced by Indonesia and almost all countries in the world should not stop the structural reform agenda.

"We will continue to carry out various reform agendas, we will continue to cut down the hindering regulations, and we will continue to simplify business and investment procedures," he said.

For this reason, the President asked all his staff to continue to improve services and facilities for potential investors who have the intention to invest in the country.

"Increasing investor confidence is very important so that Indonesia can more freely obtain investment flows," he said.

In the President's note, the World Bank stated that throughout 2020 Indonesia was included in the category of countries that were relatively easy in investment matters. However, this does not necessarily make the Head of State satisfied. He wants RI to be better at absorbing foreign capital and capital from domestic investors.

"In the World Bank report in 2020, our country is ranked 73rd out of 190 countries in terms of ease of doing business. That means it's in the easy category. But that category is not enough, but we have to improve again from easy to very easy. That's our target," he explained.

Quoting the Ministry of Finance (Kemenkeu) broadcast, the realization of foreign direct investment in the second quarter of 2021 reached IDR 223.0 trillion or grew by 16.2 percent year-on-year (yoy).

The realization consisted of Domestic Investment (PMDN) of Rp. 106.2 trillion or grew 12.7 percent yoy. Meanwhile, Foreign Investment (PMA) amounted to US$ 7.99 billion or equivalent to Rp. 116.8 trillion which is known to grow by 19.6 percent yoy.

The government claims the value of this direct investment will continue the upward trend that has exceeded pre-pandemic levels since the first quarter.