The Investment Realization Target For The First Quarter Of 2020 Is Still On The Target Path Of IDR 250 Trillion

The atmosphere of the city of Jakarta. (Photo: Unsplash)

JAKARTA - Deputy for Investment Planning at BKPM Ikmal Lukman is optimistic that the investment target in the first quarter of 2020 will reach IDR 250 trillion from the total target of IDR 886 trillion. Meanwhile for 2024, BKPM is targeting 50 percent of incoming investment outside Java.

"We are sure that we can get there. Currently it has reached Rp. 200 trillion, again the exact figure is calculated from the implementation control unit," he said, when met at an economic forum, at Hotel JS Luwansa, Kuningan, South Jakarta, Monday, February 24.

Ikmal explained, so far there have been stalled investment plans because there are still many regulations that have not met the needs in the field. There are still many gray areas that have not been fully regulated so that these loopholes are exploited by individuals to slow down the licensing process for personal gain.

On that basis, Ikmal said, one of the things that BKPM will do to pursue investment targets is to pick up the ball in solving problems.

"There have been many, last quarter Lotte Chemical. In the first quarter of Nestle, we had a big focus. But we are still running the middle one, because this will be a kind of benchmarking for other investments," he said.

Ikmal said that while waiting for the Ominbus Law to be passed, to boost investment, he would still use Presidential Instruction number 7 of 2019, where the regulation gives authority to ministries or institutions at BKPM.

"Well, this gift is attractive for investors to invest because of the ease of licensing. But with the omnibus law there are adjustments, but the existing authority is still being implemented. Now this is what will attract investors," he said.

"If earlier we depend mostly on the problem of consumption, 30 percent of the rest of the other investment. Those from this investment will provide income to the state, they will provide employment opportunities, they will have income, later they will make consumption so they will continue to rotate. investment first then consumption turns back and forth, "he continued.

50 percent investment tag outside Java 2024

BKPM, said Ikmal, hopes that the Omnibus Law will eliminate stalled investment in Indonesia, which is still happening at this time. Investment entering outside Java in 2024 is targeted at more than 50 percent. The government hopes that investment that enters Indonesia will spread in a higher quality manner.

"We hope that more than 50 percent of the investment coming in in 2024 will be spread outside Java. This of course requires the necessary policies, such as preparing supporting infrastructure," he said.

According to Ikmal, the Omnibus Law is expected to be a solution to overcome obstacles for investors who wish to invest in Indonesia. Of the 174 articles in the Omnibus Law of the Ciptaker Bill, as many as 86.5 percent are related to investment.

"Including investment for MSMEs," he said.

Ikmal explained that in order for Indonesia's economic growth to reach 5.4 percent to 6 percent in the period 2020-2024, it would require an incoming investment of IDR 5,800 trillion.

"We hope that this Omnibus Law can help our competitiveness in attracting investment with other countries in the ASEAN region," he said.