JAKARTA - Based on data from the Investment Coordinating Board (BKPM), West Java Province (Jabar) has become the prima donna of investment during the first half of 2020. West Java Governor M Ridwan Kamil also hopes that the central government will provide investment convenience, especially from other countries to enter the region.
"The central government must make it easy for investment, especially from other countries to enter. This will boost the regional economy and absorb labor," said Ridwan Kamil, quoted from Antara, Friday, August 14.
Based on BKPM data, West Java Province ranks first in the realization of foreign investment (PMA) and Domestic Investment (PMDN) amounting to IDR57.9 trillion and this investment also has an impact on labor absorption in West Java.
Ridwan Kamil predicts that there will be 60,000 job vacancies present as compensation for job losses due to the corona virus or COVID-19 pandemic.
He said that the presence of investment in West Java is a realization of the investment commitment that came during last year's business safari to investment source countries, apart from having to be proactive in following up on existing commitments.
Ridwan Kamil hopes that there will be a harmonization and synchronization of policies between the central and regional governments in order to attract investment.
"I am sure that if this is successful, the economy in West Java can jump and if it can increase it will certainly raise the national economic growth," he said.
He emphasized that attracting foreign investment is not as easy as turning your hand because Indonesia has to compete with other countries.
Therefore it needs solid cooperation between the central and local governments, for example the central government provides fiscal incentives, while local governments provide facilities such as land and labor. Thus the incoming investment will stimulate the economy and absorb a lot of workforce.
Ridwan Kamil admitted that there are several areas in West Java that are also destinations for foreign investment, including Karawang, Cikarang and Bekasi.
"West Java's target for incoming investment this year is IDR 107 trillion for the whole of 2020. To meet this target, we will carry out a strategy of picking up balls to investors from other countries," he said.
Meanwhile, the Head of BKPM, Bahlil Lahadalia, appreciated the West Java government's efforts in picking up investment to be realized in the region.
"The investment commitment of the West Java Provincial Government under Kang Emil is important. Pro investment leaders are present and future leaders, "he said.
He admitted that there was a decline in investment realization during the second quarter of 2020 by 3.4 percent compared to the same period last year.
A quite deep decline in investment realization of 8.9 percent also occurred when compared to the first quarter of 2020. In the second quarter of 2020, PMA reached IDR 97.6 trillion and PMDN in the second quarter of 2020 was recorded at IDR 94.3 trillion.
"This achievement is already lower than BKPM's expectation, because we are targeting around IDR 200 trillion (second quarter)," said Bahlil Lahadalia.
In response to this, Bahlil has been proactive in pursuing investors who have stated their commitments and communicating with them to find out the obstacles faced by investors.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
