President Joko Widodo has urged the economic ministers to make a breakthrough in resolving investment problems, particularly in relation to permits, licenses, and certificates.
“A breakthrough should be made by the economic ministers quickly. It is very important (that they do so),” President Joko Widodo said in a limited cabinet meeting here on Tuesday, September 29.
“We need to make a breakthrough to overcome investment problems in the country. We should cut the time-consuming bureaucratic red tape which makes it difficult to go through procedures to obtain permits, licenses and certificates. We should do so to make it easier to do business in Indonesia,” the President said.
To support the efforts, the President noted, a strong breakthrough needs to be made in the land acquisition process to convince the investment world.
In addition, investors should be informed of the availability of an increased amount of electricity supply.
“A proper wage and employment system should also be ensured,” the President said.
Regarding the ease of doing business, Indonesia is ranked at sixth place in ASEAN.
“Indonesia needs 10 procedures, while Singapore and Malaysia require three procedures to do business,” the President said.
To start a business in Indonesia, the President noted, it takes 52 days. In Singapore and Malaysia, it requires five days.
Earlier, the Capital Investment Coordinating Board (BKPM) was set up to continue the initiative to boost development of infrastructure through deregulation.
The BKPM is taking three strategic steps to accelerate infrastructure development, namely, abolition of restrictive regulations on investment, removing bottlenecks and marketing infrastructure projects.
A BKPM deputy for capital investment plan, Tampa Hutapea, said the development of infrastructure is one of the top priorities in the government development program.
The BKPM will, therefore, continue its campaigns to draw more investment to the infrastructure sector, he said.
Investors needs adequate infrastructure and development of infrastructure needs investment, he said, adding that the BKPM would help speed up implementation of investment.
He said the success of the country in attracting foreign investors was dependent on a number of factors, including the availability of infrastructure.
The BKPM recorded a significant increase in the implementation of infrastructure projects lately.
In the first half of 2015, investment in infrastructure reached Rp72.2 trillion, or 63 percent of what was realized in 2014 or 93 percent of that realized in 2013.
The BKPM also recorded a significant growth in investment plans in the infrastructure sector.
Based on a survey by the World Economic Forum 2014, infrastructure and logistics are among the five main challenges one faces while doing business in Indonesia.
Infrastructure will contribute towards strengthening the country’s economic foundation and ensuring sustainable growth, Franky said.
Based on the five year infrastructure development plans of the government of President Joko Widodo, 24 seaports, 15 airports , 1,000 kilometers of toll roads , 2,650 kilometers of inter-provincial roads, 49 dams, 35,000 megawatt capacity power plants, and mass transport systems in three big cities would be built in the country until 2019.
ANTARA
