JAKARTA - President Joko Widodo has asked all regional heads to give their full support to the new investment ministry. Regional heads must support the implementation of the Job Creation Act.
"The implementation of the Job Creation Act in the region must be fully supported because it will open investment", Jokowi said at an online coordination meeting of regional heads, Wednesday, April 14.
Jokowi said that investment into an area in turn will also drive the economy of the region. The unwillingness to serve investment licensing means it will also slow the growth of the regional economy which will also slow the growth of the state economy.
In addition, the investment will also provide income to countries and regions. From that investment activity, countries and regions can attract taxes and levies.
"As much as 76 percent of the country's revenue is derived from taxes. That's huge. If there is a new investment to set up a company, factory, or industry, it means that we collect taxes. There are more", said Jokowi.
Furthermore, Jokowi also asked the regional head to spend this year's regional budget (APBD) to be used to multiply labor-intensive programs.
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Jokowi said that nowadays, many people get layoffs because many factories stop production during the pandemic. Therefore, labor-intensive can be a job while waiting for the economy to fully recovered.
"Repairing the Road, it's labor-intensive. Building irrigation, it's labor-intensive. Building a school, it's labor-intensive. This will drive the regional economy and provide jobs for our people", he said.
The former Governor of DKI Jakarta also asked all regional heads to execute social spending and social assistance. Because today, the people need help from the government to support their economy.
"From the center, there is social assistance, from areas that are approximately untouched points of social assistance from the center provided by the region. Also, help small and medium-sized micro enterprises. Whether it's capital, production, or marketing. This will drive the regional economy", said Jokowi.
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