The Job Creation Law Is Claimed To Assist Investment By Up To 30 Percent In 2022

Illustration of Rupiah (Photo: Doc. Antara)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia said that the Job Creation Law (UU Ciptaker) had a positive impact on investment in 2022.

Bahlil said, thanks to the Ciptaker Law, investment increased 30 percent in the post-COVID-19 period. According to him, the investment target of IDR 1,200 trillion in 2022 will not be achieved if the government does not issue the regulation.

"The job creation law is quite a positive impact, because it increases investment by more than 30 percent in the post-COVID-19 era. It's not an easy job, otherwise we will reform the regulations," he said in a working meeting with Commission VI of the DPR, Monday, February 6.

Furthermore, Bahlil considered that the Ciptaker Law was an entry point in making national economic changes. This is because this policy increases Indonesia's competitiveness in the business world.

"And the Job Creation Law is the answer to the difficulties we have faced to boost our investment growth," he said.

As previously reported, the Ministry of Investment/Investment Coordinating Agency (BKPM) noted that investment realization throughout 2022 was IDR 1,207.2 trillion.

Investment Minister Bahlil Lahadalia said investment realization in 2022 had exceeded the target set by President Joko Widodo (Jokowi) of IDR 1,200 trillion.

"In the beginning, many people were pessimistic about whether this target could be achieved or not. Thank God we used to reach IDR 1,207.2 trillion YoY grew 34 percent, this is one of the largest investment growth and for Indonesia in the history of the republic, this is the biggest," Bahlil said in a virtual press conference, Tuesday, January 24.

The details are Foreign Investment (PMA) recorded as much as Rp654.4 trillion or 54.2 percent. Meanwhile, the realization of Domestic Investment (PMDN) was Rp552.8 trillion or 45.8 percent.

Meanwhile, on an annual basis or year on year (yoy) PMA recorded a growth of 44.2 percent. Meanwhile, PMDN grew 23.6 percent.

"In the history of PMDN, it usually grows no more than 13 percent, a maximum of 15 percent. This means that not only FDI believes, national entrepreneurs also believe in the government and how the economy will be in the future," he explained.

Then, Bahlil said the realization of investment in Java was IDR 570.9 trillion, and outside Java it was IDR 636.3 trillion. Bahlil said, there were as many as five locations that contributed to PMA and PMDN's largest investment throughout 2022.

The five locations are West Java with IDR 174.6 trillion, DKI Jakarta IDR 143.0 trillion, Central Sulawesi IDR 111.2 trillion, East Java IDR 110.3 trillion, and Riau IDR 82.5 trillion.

Meanwhile, the five largest countries to invest in Indonesia include Singapore, amounting to 13.3 billion US dollars. Then, China 8.2 billion US dollars, Hong Kong 5.5 billion US dollars, Japan 3.6 billion US dollars and Malaysia 3.3 billion US dollars.