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Foreign Entrepreneurs Interested in Investment in Indonesia

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The interest of foreign entrepreneurs to invest in Indonesia is very high. They believe that investing in Indonesia is very profitable. In addition, the rules for investing are also made easier thanks to the Omnibus Law on Job Creation, so they don’t have to worry about bureaucracy and so on.

The pandemic made Indonesia’s financial condition a bit shaky because the government focused on restoring public health. Meanwhile, in the economic sector, it was disrupted due to declining purchasing power so that the wheels of the economy turned more slowly. However, the Government moved quickly to overcome it so that volume 2 of the economic crisis would not occur. One of them is by facilitating investment in Indonesia.

The government’s strategy is successful because there are more and more investors in Indonesia, which is dominated by foreign investment. The Minister of Investment/Head of the Investment Coordinating Board, Bahlil Lahadalia, stated that the realization of investment was dominated by FDI (foreign investment) of 147.2 trillion rupiah or grew by 31.8% compared to last year.

Minister Bahlil added that foreign entrepreneurs are starting to feel comfortable and confident in the stability of state policies in encouraging investment. This is evidenced by the increase in investment realization when compared to last year. Countries that are interested in investing in Indonesia are Singapore, Hong Kong, China, Japan, and the United States. Other countries will follow because they believe that investing in Indonesia is profitable.

Foreign entrepreneurs are interested in entering and investing in Indonesia because they are protected by the Omnibus Law on Job Creation, especially investment clusters. With such a strong legal umbrella, they are sure to invest, because it is protected by the government. The guarantee was immediately given by President Jokowi so that they increasingly believe that doing business in Indonesia is very profitable and comfortable.

In the investment cluster in the Omnibus Law on Job Creation, it is stated that licensing is risk-based. It will be divided into 3, namely low, medium and high risk. The assessment is based on criteria, location, type of business, etc. If investors build a factory and it is assessed as a medium risk, they can breathe a sigh of relief, because they only need to take care of their NIB (business license number) and standard certificates. Meanwhile, the verification requires the role of the central and local governments.

Meanwhile, in the investment cluster, it is also stated that there is a simplification of business licensing. So that if it is simplified, there is no need to beat around the bush in the bureaucracy. The management can also be done via online single submission. This is what investors like because they do not like licensing that is too complicated. But now licensing is made easier and can be done online so it saves time.

Entrepreneurs are also happy to invest in Indonesia, because Indonesia has a lot of potential, in the form of natural resources and mining materials. Therefore, many companies are vying to invest in Indonesia, including electric car manufacturer Tesla who is also interested in entering Indonesia. Even Minister of Manives Luhut Pandjitan has met directly with Tesla CEO, Elon Musk, to discuss this.

Foreign investment is increasingly widespread because investors require infrastructure facilities if they want to build new businesses in Indonesia. Meanwhile, the government has also built various supporting infrastructure, ranging from roads, toll roads, to bridges. The development is not only in Java but also in Kalimantan and other islands, so that there is an even distribution of investment.

Foreign entrepreneurs from various countries are very interested in investing in Indonesia. They believe that investing in Indonesia will be profitable because there is legal protection from the government. Investment will be very good because it can increase job vacancies, after the construction of many new factories from the results of foreign investment. People are happy because they can work again and get a fixed salary.

Aldia Putra, Author is a contributor to the Press Circle and a Cikini Student

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