Indonesia is an Investment Friendly Country
By: Alfisyah Dianasari )*
Cutting regulations through the presence of the Job Creation Act is a breath of fresh air for investment growth. The presence of the law is also expected to be able to show that Indonesia is an investment-friendly country.
In his speech in front of MPR members, President Jokowi mentioned a lot about the importance of the government in cutting licensing in the investment sector, the licensing sector which has been considered problematic and tends to be convoluted, resulting in the inhibition of foreign investment in Indonesia.
The former governor of DKI Jakarta emphasized the importance of removing a number of obstacles, the complex licensing sector must be trimmed to make it simpler.
Moreover, with so many regulations, there are more opportunities for corruption, this is in line with what was said by the KPK, that corruption in the licensing sector is still an easy ground for corruption of regional officials. It is recorded that of the 105 regional heads whose cases are being handled by the KPK, 60 of them are involved in bribery cases, while the rest are related to cases that harm state finances, gratuities, and extortion. Therefore, to overcome this overregulation problem, of course, it is necessary to revamp the concept of the process of forming laws and regulations in Indonesia.
If licensing is easy and without corruption, of course, the interest of investors to come to Indonesia will be higher. The impact of course on the opening of job opportunities.
In order to increase economic growth, Minister of Finance Sri Mulyani once said that Indonesia must be open to foreign direct investment (FDI) in order to increase economic growth.
Within the Ministry of Finance itself, Sri said that her party continues to improve the quality of policy making, as well as strengthen research to create new innovations in regulating state revenues and expenditures.
Meanwhile, the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia conveyed President Jokowi’s mandate related to investment. He said that Jokowi directed Indonesia to become an investment-friendly country that contributes positively to society and the country.
In line with this, on January 10, 2022, the government will revoke a number of business licenses that do not operate or misuse these permits. This revocation begins with the revocation of the Mining Business Permit (IUP).
Bahlil said there are a total of 2,434 mining companies that are planned to be revoked because they are not operating even though they have obtained a permit from the government. In addition, there are business permits in other sectors such as forestry and land which have been reviewed and studied in depth by the technical ministry.
Regarding the IUP which will be revoked tomorrow, Bahlil revealed that there were 5,490 permits issued by the government. This shows that almost 40% of the issued IUPs will be revoked because they are not running their business.
On the other hand, Bahlil also revealed that his party had coordinated with the Ministry of Environment and Forestry to revoke forestry business permits covering an area of more than 3 million hectares (ha). He called a number of “rogue” companies using land concession permits not for business purposes as the purpose of granting these permits.
The government is indeed boosting cooperation with a number of investors, both domestic and foreign. The aim is none other than to move the national economy through investment. In this context, the Head of State emphasized that Indonesia must be investment friendly and environmentally friendly.
Jokowi said, “Investments that create jobs whose products are able to compete in the global market, are environmentally friendly and are our priority. This means that we must be investment friendly and also environmentally friendly.
At the global level, almost many countries in the region have begun to apply the concept of an environmentally friendly economy. In Europe, for example, they have started using green products.
For Indonesia, the government expects low-carbon, power-efficient and socially inclusive products to grow rapidly. In fact, the President is Optimistic that Indonesia can develop the program.
“We have a great opportunity to enter green products and the green economy in terms of production, distribution and consumption.
Investment will have an impact on increasing economic growth, so Indonesia needs to formulate a formula so that investors are more interested in investing in Indonesia, so that being friendly to investment is a must for every policy maker.
)* The author is a contributor to the Press Circle and Cikini Students