JAKARTA - The investment sector is considered the only hope of the government to be able to boost economic growth amid the threat of the current global crisis.
Deputy for Investment and Mining Coordination of the Coordinating Ministry for Maritime Affairs and Investment Septian Hario Seto assessed that investment is the key to economic growth because consumption and export and import performance will be quite depressed with the conditions that occur.
"Our hope is that we are the only investment. Investment is very important, especially investments originating from abroad or FDI (Foreign Direct Investment)," he said at the Investment Partnership Forum, quoted from Antara, Wednesday, December 7.
Seto explained that people's purchasing power in 2023 is expected to decrease along with the reduced incentives provided during the COVID-19 pandemic. Interest rate pressure is considered to cause household consumption to decrease.
On the other hand, government consumption is also expected to experience pressure because the budget deficit will be set again by less than 3 percent.
"If the deficit goes back to 3 percent, of course government spending will experience restrictions. This will also affect even though we see that there is election spending starting next year, it is hoped that it will boost the economy," he said.
In terms of exports and imports, according to Seto, Indonesia's main export commodities are also predicted to be under pressure with current global conditions.
"The commodity prices are starting to fall, nickel, copper, tin, are starting to fall. What is stable is CPO, but generally our main commodities will experience pressure. The driving force of our exports will decrease," he said.
Furthermore, Seto said that in the last five years (2017-2021) Indonesia has succeeded in attracting more than 100 billion US dollars of foreign investment. Compared to other countries in ASEAN, Indonesia occupies the second position after Singapore which is the investment hub.
Therefore, he considers investment to be the key to economic resilience in the coming years, especially with world conditions full of challenges. He also encourages the establishment of partnerships between big entrepreneurs and entrepreneurs in the regions and MSMEs.
"This is where I think the key for next year, not only next year but also in the future. The key to how our economic resilience can be formed. If the partnership process goes well according to expectations, big businesses will develop, MSMEs will also participate," said Seto.
Seto also revealed that one of the efforts made by the government to encourage the economy is to attract foreign investment in the downstream sector.
He noted that there are 30.9 billion US dollars in downstream investment in Indonesia which is currently entering the construction stage and or waiting for approval.
"This pipeline is not just on paper, yes, this is a lot of process. Some are applying for permits, some are still waiting for approval and facilities and others. These are projects whose 80 percent probability should be realized," said Seto.
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