Government Prepares Big Investment Attract Strategy
By: Zakaria )*
The government is preparing a strategy to attract large investments in order to develop the country and deal with the impact of the pandemic in Indonesia. The investment to be held is prioritized in the downstream sector, so that the results will be more profitable for both parties.
The hallmark of President Jokowi’s administration is countrywide development and investment. These two things are indeed a condition for this country to be more advanced. Especially when it comes to dealing with a pandemic. The construction project continues, along with the investment. In fact, investment is the spearhead because with the investment, the projects will run smoothly.
Investment Minister Bahlil Lahadalia emphasized that 2022 will be the year for investment in the downstream sector or industrial downstream. This will be able to contribute to the achievement of the jumbo investment target of IDR 1,200 trillion at the same time.
Bahlil continued, investment in the downstream sector will be prioritized to create added value to the economy. Downstreaming in Indonesia will be driven mainly in the nickel and coal sectors.
In a sense, when there is investment in the downstream sector, it will be good because it processes a mining material into a finished form, not semi-finished, so that automatically the price can be more expensive. When the price is higher, the company will automatically profit, so it is certain that the investment will be equally profitable for both parties (the Indonesian government and foreign investors).
Downstream industry is an industry that uses basic materials from the upstream industry into ready-to-use goods. Indonesia is very ready for this industry, moreover it is supported by capable human resources. If it is added with support from foreign investors, it will be even better, because there are natural resources that are ready to be processed, such as coal and nickel.
Nickel downstreaming started several years ago by manufacturing battery factories for electric cars. Indeed, we don’t have the technology to make our own electric cars like Tesla, but at least we can enter the industry by providing batteries.
The battery industry is very good because electric cars are predicted to be the car of the future. Not only more environmentally friendly but also exclusive, so that it will image as success. Electric cars are no less than supercars that use fuel as a source of energy, in fact they are more unique and seek attention.
With the preparation of proposals and examples, the government is optimistic that it can attract more investors in the downstream industry. The reason is because they see for themselves the natural wealth and mining products in Indonesia that have the potential to be processed. In addition, the social condition in this country is considered relatively safe, so it can be used as an investment location.
Meanwhile, another strategy to attract large investments is to provide a legal umbrella so that there is clear legality. Investors will be attracted to enter Indonesia and provide large capital, because there is already an Omnibus Law, the work copyright law, which has an investment cluster.
With the investment cluster in the Omnibus Law, it is clear that investment is facilitated, permits are also completed quickly (only five working days) and can be managed online so that it saves time and effort. If there is a regulation like this, we are optimistic that we can ‘capture’ big-name investors and advance the Indonesian economy.
The government has prepared many strategies in order to attract massive investment, especially in the downstream industrial sector. This sector is very good because it can provide multiple benefits, because what is sold is finished goods. We are optimistic that large-scale investments will further advance Indonesia and become an Asian tiger.
)* The author is a contributor to Pertiwi Institute