Investment in Indonesia Floods of Enthusiasts
By: Arya Pradipta)*
The Ministry of Investment ensures that investment in the country remains attractive in the midst of the Covid-19 pandemic. This is reflected in 2020, the realization of investment has exceeded the target. Not only that, the government has even managed to balance the composition of investment in Indonesia. Deputy for Investment Cooperation at the Ministry of Investment/BKPM Riyatno said 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.
In addition, investment outside Java has exceeded investment in Java, which is 50.5 percent. Meanwhile, investment in Java is 49.5 percent. He said that this was an extraordinary thing because during or before the Ministry of Investment was in general, FDI was higher than PMDN, while investment was also mostly in Java.
Not much different, in 2021 the realization of investment from January to September 2021 has reached 73.3 percent or Rp. 659.4 trillion of the target of Rp. 900 trillion, and this again shows an interesting development where PMA and PMDN remain balanced. . He said that the realization between Java and Outside Java still showed positive things, where outside Java was 51.7 percent and Java 48.3 percent. This means that this is something that is very good so that the realization of this investment is balanced, not only in Java.
According to Riyatno, this success cannot be separated from BKPM’s five steps in facilitating investors. First, carry out promotions to convince investors that Indonesia is investment-friendly. The second step is to help with licensing services. Third, help financial closing. Fourth, assisting until the production stage and finally, assisting end-to-end services to investors until the investment can be realized.
The Covid-19 pandemic, which has been going on for almost two years, seems to have also encouraged people to allocate their expenses for investment. This has a positive impact on the number and composition of investor transactions in the capital market. The positive impact is that in 2021 the composition of investor transactions, especially retail investors, has increased from 36% to 56.2% and what we should be grateful for is the number of investors, which reached 7,152,318 investors in 2021. Compared to last year, the increase reached 84.3%. .
Then the most interesting thing is that now more than 50 percent of investors in the capital market are millennials. Currently, investors are able to anticipate the existence of PPKM so that it does not affect the pattern of transactions in the market. The new normal, the infrastructure where online transactions are starting to open, making it easier for them.
As of December 2021, the IDX recorded that there were 766 listed companies and 123 bond listed companies with a market capitalization of Rp. 8,255.6 trillion. Meanwhile, at the close of 2021, the JCI reached 6,581.5 with an average daily share trading of IDR 13.4 trillion. This figure is of course higher than before the pandemic, so it can be said that the Indonesian economy has shown a recovery.
Meanwhile, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan emphasized that the government has prepared various regulations to support Indonesia’s economic transformation, especially in the investment sector. One of them is by issuing a job creation law and its derivative regulations. According to Luhut, the Job Creation Law will make the investment process easier.
He said that in the future the government will continue to focus on implementing these regulations to facilitate investment that drives Indonesia’s economic transformation. Thus, it will be easier for investment to enter the country.
With this regulation, it is hoped that the economic atmosphere in Indonesia will become more investment-friendly. So that investment in Indonesia will be flooded by investors who are interested in investing in Indonesia.
)* The author is a contributor to Pertiwi Institute