By: Made Raditya )*
The Job Creation Act is a government breakthrough to make business easier. The structural reforms are expected to attract foreign investors, including from Qatar.
The Indonesian government continues to hold talks on strengthening cooperation with Qatar in the investment and trade fields, as an effort to improve relations between the two countries during the 2022 World Economic Forum (WEF) series of activities in Davos, Switzerland.
Coordinating Minister for Economic Affairs Airlangga Hartarto was noted to have held a bilateral meeting with Qatari Finance Minister Ali bin Ahmed Al Kuwari Faisal Al-Ibrahim. During the meeting, Qatar appreciated the structural reform efforts through the Job Creation Law.
The Job Creation Act is claimed to provide certainty of ease of doing business and cut licensing through the Risk Based Approach (RBA) licensing mechanism. This law is expected to encourage Qatari entrepreneurs to increase business cooperation with Indonesian entrepreneurs.
In 2021, the total trade between Indonesia and Qatar will reach USD 893.0 million, with the value of Indonesia’s exports to Qatar reaching USD 217.2 million and Indonesian imports from Qatar reaching USD 675.8 million. Indonesia’s trade deficit with Qatar is the largest contribution from the oil and gas sector.
While in the investment sector, Qatar is ranked 47th out of a total of 157 countries investing in Indonesia. In the 2016-2021 period, Qatar’s investment realization in Indonesia was recorded at USD 23.3 million or 0.01 percent of the total realized foreign investment.
Qatar’s largest investment in Indonesia is in the mining sector, machinery industry, medical instruments, electronic equipment, precision, optics, electrical equipment, as well as the chemical and pharmaceutical industry sectors.
Coordinating Minister Airlangga said, to increase the investment profile of the two countries, it is necessary to encourage institutional cooperation between investment management institutions or the Indonesia Investment Authority and the Qatar Investment Authority.
Coordinating Minister Airlangga and Minister of Finance Ali also discussed the financial condition and inflation of developing countries, including the current world oil price, as well as the issue of energy financing to achieve the target of net zero emission by 2060.
Minister of Finance Ali hopes that the affirmation for the solution to Qatar’s investment problems is through structural reforms carried out by Indonesia. He also expressed his desire to open cooperation between the two countries in the manufacturing and military fields and discuss the hosting of the 2022 World Cup in Qatar which will be held at the end of 2022.
Previously, the Indonesian Ministry of Foreign Affairs encouraged entrepreneurs from Indonesia and Qatar to explore the potential for cooperation to increase Qatari investment in Indonesia. The Ministry of Foreign Affairs also wants to facilitate and facilitate the entry of more investment from Qatar into Indonesia.
Qatar has been very impressed with the development that Indonesia has continued to undertake over the past few years under the leadership of President Joko Widodo. With the potential of Indonesia’s natural and human resources, investors believe in investing. This trust is of course proof that Indonesia has all the prerequisites to continue to grow both in terms of quality and quantity of the economy.
The government is indeed boosting cooperation with a number of investors, both domestic and foreign. The aim is none other than to move the national economy through investment.
President Jokowi said, “Investments that create job opportunities whose products are able to compete in the global market, are environmentally friendly and are our priority. This means that we must be investment friendly and also environmentally friendly.”
Previously, the Deputy for Investment Cooperation of the Ministry of Investment/BKPM Riyatno said that the progress of investment realization reached Rp. 826.3 trillion in 2020. This reached 101.1 percent of the target of IDR 817.2 trillion.
From this realization, what is interesting is that Domestic Investment (PMDN) shows a balance with Foreign Investment (PMA). Based on BKPM data, PMDN reached 50.1 percent or Rp 413.5 trillion, while PMA was 49.9 percent or Rp 412.8 trillion.
Qatar’s investment in Indonesia can still be increased, so the Indonesian government needs to facilitate and facilitate investment from Qataris who have an interest in investing in the country.
)* The author is a contributor to Lingkar Pers and a student of Cikini