It Takes An Investment Of IDR 1,000 Trillion In Order To Achieve 6 Percent Economic Growth

Investment Illustration. (Photo: Pixabay)

JAKARTA - The Investment Coordinating Board (BKPM) said a minimum investment value of IDR 1,000 trillion is predicted to boost economic growth from an average of 5 percent to 6 percent in accordance with the 2020-2024 National Medium-Term Development Plan (RPJMN).

"We are not only promoting investment and far from that, how to realize investment," said BKPM Head Bahlil Lahadalia at the Papua Development Conference in Jakarta, Tuesday, December 17.

He said when he first served at BKPM, there was an investment value of Rp. 708 trillion from investors who were in the country but could not be executed. The obstacle, he continued, is that the licensing procedure is still long.

"Previously, there was a three-hour OSS (online submission system) list, then the registration number was issued but the company could not yet carry out business activities because they went around the department to manage permits, it was not finished a year," he said.

For that, he said, the government requires licensing from centralized ministries / agencies at BKPM. In addition, to encourage the economy and welfare of the local community, BKPM asks for the collaboration of all foreign investment in the country to work together with entrepreneurs in the regions.

The investment that is expected to come in, he continued, is investment that creates jobs and uses Indonesian labor. Bahlil further explained that investment has a close relationship with public consumption, especially since the consumption sector contributes 56 percent to Indonesia's economic growth.

"Consumption occurs when there is public purchasing power. The purchasing power can be realized if there is certainty of income, and income can be executed if there are jobs, while the essence of employment is investment," he said.

In the 2020-2024 RPJMN, economic equality is one of the government's priorities in realizing investment. One of the targets, he said, was Papua and West Papua, whose development would continue to be boosted.

In West Papua Province, he said, there are four priority projects, namely the development of a new port and capacity development at the Port of Sorong Seget.

Then the development of a priority industrial area in Bintuni Bay and a special economic zone (KEK) in Sorong as well as a gas pipeline / LPG terminal project, namely the Tangguh LNG Train-3 Project.

Meanwhile, in Papua Province, he continued, there are two national strategic projects that have been completed, namely the revitalization of Sentani Airport, Jayapura and the construction project of the National Border Post. The two projects are expected to boost regional economic growth.