JAKARTA - Deputy Chairman of the National Economic Council (DEN) Mari Elka Pangestu revealed that his party is trying to bring in the labor-intensive sector. He said this step was also in line with the government's desire to revive the industry in the sector.
"So the type of investment we expect is not only from capital intensive and downstreaming, but actually how to revive the labor-intensive. The DEN has also intensively studied what are the obstacles of labor-intensive industries," he said at the Indonesia Summit 2025 event, in Jakarta, Wednesday, August 27.
Let's say that if investment is directed to the labor-intensive sector, there will be 600,000 new jobs. However, these investors face obstacles to making investments.
Therefore, continued Mari, her party will overcome challenges in the labor-intensive sector, ranging from submitting moderate analysis regarding environmental impacts (amdals), licenses, location permits, to security issues.
"And we have facilitated a lot, there are around 20 that will create maybe around 600,000 jobs. Because he faces barriers to investment. Licenses, amdals, and location permits, land issues," he said.
"So this is what I think we are doing together with the Coordinating Minister for the Economy. So this is very important, because it is a signal that will be able to attract investment," he continued.
In addition, the former Minister of Trade acknowledged that although the unemployment rate in the Prabowo Subianto administration was claimed to have decreased, many people actually worked in the informal sector.
Furthermore, let's say that this makes the contribution to the economy less than optimal.
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"How about even though it is said that the unemployment rate has decreased, what happened is that many new jobs are absorbed in the informal sector, whose income is low and their work is not full-time," he said.
Therefore, let's say that the DEN will encourage investment to be encouraged into sectors that will be able to create jobs. Including in the agricultural sector and don't forget the service sector.
"So I think this needs not only to increase investment, but to invest in which sector, which areas also need the right strategy," he explained.
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