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Investment in Indonesia Has Bright Prospects

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By: Aulia Hawa )*

Indonesia is believed to have bright investment prospects. These advantages are reflected in legal certainty through the Job Creation Act, incentives for business actors, and government guarantees to investors. In fact, some people believe that Indonesia will be strong in facing the threat of an economic recession that is currently starting to hit.

The condition of the Indonesian economy was indeed somewhat shaken due to the effects of the pandemic, and the crisis occurred globally. However, the government did not remain silent or gave up by adding debt to the IMF (International Monetary Fund). Investment is the mainstay of saving this country, and the government is trying hard to get foreign investors to believe and want to do business in Indonesia.

To convince foreign investors, various approaches were taken. One of them is to explain that investment in Indonesia has very good prospects. Yuliot Tanjung, Deputy for Investment Climate Development at the Investment Coordinating Board (BKPM) stated that the government is trying to increase investment in Indonesia.

Yuliot continued, the first strategy to increase investment in Indonesia is the policy of developing green investment. Second, with the economic transformation and downstream industry of natural resources (SDA). While the last one is the collaboration of small, micro, and medium enterprises (MSMEs) with foreign and local investors.

In a sense, these three strategies are very capable of increasing the level of investment in Indonesia. With green investment, many foreign entrepreneurs will be attracted, because the current business trend is not a big industry, but a green investment alias that is in harmony with nature. More and more international people are aware of global warming and are turning to green industries.

Green investment is a cooperative business that is earth-friendly and does not increase air emissions or leak ozone. One example is the electric car industry. In Indonesia, the focus is not on electric car manufacturers, but on batteries, because they can supply various electric vehicle manufacturers in the world. An electric car battery factory has been built in Batang, Central Java and is growing thanks to investment.

Downstreaming of natural resources is an increase in the added value of natural resources, and the price can increase drastically if they are reprocessed. An example of potential investment in this field is the seaweed processing industry. Seaweed is processed into nori (seaweed sheets) and exported to Japan and other East Asian countries.

Investors are also interested because Indonesia’s natural resources are abundant, not only on land but also in the ocean. There are many other natural resources such as coffee, coconut, which can be processed and exported. The results of this investment cooperation will be mutually beneficial and bring benefits, including for the community.

With the examples from the industry above, it is clear that investing in Indonesia is profitable. In addition, the products are not only exported, but also marketed domestically. Investors also believe that Indonesia is still a promising market.

When the government intensifies investment, it will be optimistic about achieving the investment realization target in 2022 which is 1,250 trillion rupiah. This target is indeed big, but BKPM is optimistic that it will achieve it. Reflecting on the investment realization target in 2021, which was initially set at 900 trillion rupiah and the nominal achieved was 901 trillion rupiah.

The government continues to do its best to increase the realization of investment according to the target, both in terms of promotion, regulation, and utilization of natural resources. These various facilities are advantages that may not exist when compared to other countries, so they are expected to increase the interest of investors to invest in Indonesia.

)* The author is a contributor to Pertiwi Institute

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