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Indonesia Maintains Investment Grade


Foreign rating agencies report that Indonesia is an investment-worthy country. These results indicate that the ease of investing in Indonesia has received international recognition.

The pandemic has put us in survival mode and the government is trying hard to restore economic conditions to the same as before the Corona virus, even better. One way is to encourage foreign investment because it can increase foreign exchange and reduce unemployment in Indonesia. Foreign investors get security guarantees directly from President Jokowi.

With the Job Creation Act, investors get strong legal protection. They are also busy entering this country. No wonder Indonesia is the country with the second highest investment ranking in the world, behind Mexico (according to the results of a US News survey). This rating is very good because it proves that Indonesia is very worthy to be a place to invest.

Meanwhile, the Standard and Poor’s Rating Agency stated that Indonesia has succeeded in maintaining its economic outlook by maintaining its rating as an investment grade category. Coordinating Minister for the Economy Airlangga Hartanto stated that this recognition is a strong indication of economic recovery that will continue for the next two years.

Minister Airlangga added that we are grateful that after two years Indonesia’s outlook has finally been upgraded to stable, in the midst of the economic election process and global risks (conflict between Russia and Ukraine). This shows that investor confidence is still strong in the credibility of government policies and economic resilience. Economic growth also reached 5.1%.

In a sense, Indonesia’s very high investment grade rating shows how much confidence foreign investors have. They are busy entering this country because there is a direct security guarantee from President Jokowi. In addition, there is also a strong legal umbrella, namely the Job Creation Law, which has an investment cluster.

Investors agree to do business in Indonesia because there is support from infrastructure, and they do require it. The reason is because if there is a factory that is the result of investment but access to roads is difficult, it will make it difficult for the mobility of the company’s cars and vehicles belonging to its employees. But now the infrastructure is very good, not only in Java but also throughout Indonesia.

In addition, investors are also willing to set up factories in Indonesia because it is a potential market. It is common knowledge that our society is consumptive. Moreover, the number is more than 200 million people. They are a very good market because the marketing parties from investment companies do not have to sell far, enough in Indonesia to get a lot of benefits.

If many countries invest, it will be profitable because one indicator of a country’s progress is the amount of investment. When there are many investors, Indonesia can rise after being hit by the pandemic for two years. In fact, we are optimistic that we will do better and become an Asian tiger.

In addition, the more investment, the more foreign exchange that comes in. The amount of foreign exchange will be profitable because it can be channeled into various programs that benefit the community. We can live comfortably even though it is still a pandemic and the government is trying hard to make it happen, therefore it is natural that the community supports the presence of investors in Indonesia.

Indonesia has managed to maintain its high ranking as an investment-worthy country. All of this is thanks to the hard work of the government which provides direct guarantees and legal protection in the form of the Job Creation Law. Investors are also happy because there is adequate infrastructure, thus facilitating their mobility.

Kenia Ayu, Author is a contributor to Pertiwi Institute

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