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Appreciating Investment Achievements in Indonesia

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By: Syarifudin)*

Very high appreciation must be given to the government which continues to work hard in the process of accelerating the nation’s economic recovery. This was paid off by the achievement of Indonesia’s investment in the second quarter of 2022 which turned out to be exceeding the target.

To be able to bounce back and recover after being rocked by the Covid-19 pandemic in the last two years, coupled with the threat of inflation and recession that had plagued global markets, the Government of Indonesia continues to strive to strengthen the fundamental condition of the country’s economy. One way is to maintain the investment climate.

Regarding this, Deputy Chairman of the Coordinating Chamber of Commerce for Maritime Affairs, Investment and Foreign Affairs, Shinta Kamdani said that his party appreciated Indonesia’s investment performance in the second quarter of 2022 which exceeded expectations. For the remainder of 2022, the government and business actors must continue to maintain investment momentum and a conducive business climate in Indonesia.

He hoped that the government would continue to strengthen the basic parameters of the economy, such as inflation and exchange rate stability. Shinta said this was important to maintain high public confidence in encouraging economic activity and investor confidence in developing business in Indonesia.

Shinta added that the global economic situation is expected to worsen, putting more pressure on the economies of developing countries such as Indonesia. The flow of foreign investment that dominates the structure of investment receipts, according to him, could be disrupted or even excess outflow occurs if you are not careful.

Therefore, Kadin stated that indeed the Government must remain vigilant and continue to consistently improve national economic stability. In addition, it must also be accompanied by consistently implementing effective structural reforms to improve the efficiency and competitiveness of the national economic environment.

Shinta said this would allow the government to continue its recovery and maximize growth even when global conditions were not favorable. For information, data from the Ministry of Investment / Investment Coordinating Board (BKPM), the realization of investment from January to June 2022 is 584.6 trillion and the absorption of direct labor is 693,537 people. Investment Minister Bahlil Lahadalia said foreign investment in the first half of 2022 would reach 53.1 percent, or Rp 310.4 trillion.

Meanwhile, Minister Bahlil Lahadalia added that by 2022, investor confidence, especially foreign investors, will improve in Indonesia, reaching 53.1% of total investment. Bahlil said that the confidence of domestic and foreign investors is increasing towards government policies, especially in the investment sector.

On another occasion, Economist Eko Listiyanto, who is also Deputy Director of the Institute for Development of Economics and Finance (INDEF), said that the realization of investments that have been pursued by the Government should also be appreciated. Because, from the target of Rp. 856 trillion, in 2021 alone, Indonesia’s investment achievement of Rp. 901 trillion, is far above the target. This performance is a strong reason that the government continues to improve and Indonesia is a strong country, while the economic crisis after the Covid-19 pandemic has put other countries at risk.

This makes investors choose to invest in Indonesia because the conditions in countries that are usually used as investment destinations are in fact much worse than this nation. On the other hand, the domestic consumption sector is also the biggest contributing factor in the success of achieving investment value.

It is undeniable that consumption is indeed the dominant factor in the economic growth of a country, besides that this factor will continue to be looked at by investors as the basis for their decision to invest in a country. Because the realization of their investment with large consumers, it will automatically grow as well.

Eko added that if the Government really wants these investors to keep investing their capital in Indonesia, then the speed of investment must be maintained, in the sense that this nation must be ready to be able to offer an investment project so that investors can immediately execute it.

Executive Director of CORE Indonesia (Center of Reform on Economics), Mohammad Faisal explained that a contraction like that experienced by America and Europe is still too far away for Indonesia. He added that when it comes to investment value, Indonesia is already in a recovery position after the pandemic, which means that the investment value is guaranteed to be good.

Although Indonesia’s investment achievement in the second quarter of 2022 has exceeded the target, the General Chairman of the National Entrepreneurs Network (Japnas) Bayu Djokosoetono emphasized that the organization he leads will continue to focus on synergies in creating business and investment opportunities in Indonesia.

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