Indonesia’s Favorite Investment Destination

By: Panji Saputra)*

Indonesia is still a very promising investment destination. The reason is because the Indonesian economy is still stable despite the effects of the pandemic. In addition, regulations such as the Omnibus Law support the investment world because it has investment clusters and is easy to do business.

Since the New Order era, Indonesia has become a favorite investment destination from various countries in the world. Cooperation in the form of investment continued, although it faltered during the monetary crisis. After the reforms and the administration of President Jokowi, the investment sector has been boosted again. The goal is to reduce the negative impact of the pandemic for almost 3 years.

A member of the Board of Governors of Bank Indonesia, Aida S. Budiman, stated that many countries want to invest in Indonesia because of the good economic conditions. The proof is that in the second quarter of 2020, the economic growth was 5.44%.

This means that when Indonesia’s economic growth is positive, it is very good and will be trusted by other countries to invest. Even though it is still a pandemic, Indonesia is not in a slump or experiencing severe inflation and recession. Rising economic growth proves that the government is good at controlling the effects of the COVID-19 pandemic.

Indonesia’s positive economic growth has boosted investor confidence and willing to invest. The reason is that they are looking for countries that have stable financial and economic conditions. If the economy is good, it will have a positive impact on the investment world, and make the investment earn big profits.

Unlike countries that are threatened with recession and hit by high inflation, investors will be hesitant to invest their capital. The reason is because they do not want to lose and look for a safe situation. There are many countries that are actually potential for investment, but investors look at the background, and Indonesia is considered to have a strong economy.

Meanwhile, Head of Bank Indonesia West Java Representative, Herawanto, stated that the focus of the 2022 investment push is renewable energy and food security. In a sense, food security is the focus because it becomes the capital to face the threat of a global recession which is predicted to occur in 2023.

The government is ready for the worst, although it is hoped that a global recession will not occur. The investors who were recruited were those working in the food and food security sector . In the second half of 2022, foreign investment in the food and beverage sector will reach 19.7 trillion rupiah.

The investment achievement is very good because it proves that Indonesia is a favorite destination for investment. Investors want to enter Indonesia because it has a good market, which has a population of more than 220 million people.

Meanwhile, to achieve food security conditions, the government is trying to stabilize food stocks and facilitate accommodation. Here, investors can cooperate in the processing. For example, tubers are not just planted and then sold. However, it is processed again into gasol flour (for baby porridge), chips, and other products that add to its selling value.

President Jokowi stated that Indonesia is still trusted as an investment destination by many countries in the world, due to stable economic and political conditions. Even though the world is in a financial crisis and many countries are scrambling for investors, Indonesia has managed to get it.

The government has succeeded in attracting investors and competing with many other countries which are also investment destinations. The Indonesian government’s strategy is to ratify the Omnibus Law on Job Creation, which has an investment cluster. With this law, the licensing and management of investments will be made easier, so that investors will be interested in doing business in Indonesia.

Indonesia has also succeeded in becoming an investment destination because of its stable economic condition. When it is still a pandemic and fuel prices are adjusted, then there is no riot. The price of goods is indeed adjusted, but at a reasonable level and does not trigger inflation.

Then, Indonesia’s stable political condition is also an important consideration for investors to do business in this country. In Indonesia there are no coups or tragedies that occur because of politics. Investors want to do business and pour their capital, because they believe that the political conditions in Indonesia are safe in the future.

Investors also want to invest in Indonesia because it has abundant natural resources, which can be processed and have high selling power. But people don’t get it wrong. Investors do not want to ‘rob’ our natural wealth. But they work together in the processing of natural resources, and the profits are also shared by both.

Indonesia is still a favorite destination for many foreign investors, because they consider this country to have good prospects. Indonesia has a large population, which is a good market. Then, Indonesia’s economic condition is considered stable even though it has been hit by a pandemic for almost 3 years. Indonesia’s political conditions are also relatively safe, so that foreign investors do not hesitate to enter Indonesia.

)* The author is a contributor to the Nusantara Reading Room

GovernmentindonesiajokowiPolitic
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