By: Marwan Achmad)*
Indonesia began to outperform countries such as India and the Philippines as the most attractive economies in Asia. This is due to the increase in economic confidence of Indonesia’s non-commodities which again improved.
For Indonesia alone, investment becomes the main support of economic growth in 2017. In the first quarter of 2017, the Investment Coordinating Board (BKPM) noted that investment realization of Domestic Investment (PMDN) and Foreign Direct Investment (FDI) reached Rp 165.8 trillion. This means that there is an increase of 13.2 percent from the same period in 2016, which in 2016 only amounted to Rp 146.5 trillion. The investment of PMA in this industry contributes 45.43 percent of the total foreign direct investment in the first half of 2017 of USD15.53 billion.
The realization of the first quarter investment, capable of absorbing 194,000 workers. The data of PMA and PMDN realization in the first quarter of 2017 illustrates that investment interest in Indonesia remains high.
In order to boost investment realization in 2017, the Minister of Industry plans to create a package of economic policies, infrastructure development, industrial estate development and provision of fiscal incentives in the form of tax allowance and tax holiday. The package of economic policies will aim to encourage economic growth for the better.
The development of industrial estate is one of the government’s efforts to reduce domestic economic inequality to realize Indonesia Centris. Until now, the total industrial area that has been continuously driven by the development of 27 industrial areas, where eight industrial estates have started to operate, nine industrial estates are still construction phase, and the remaining 10 industrial areas are in completion of planning.
Industrial areas outside of Java that already operate, include Palu Industrial Area, Central Sulawesi, Morowali Industrial Area, Central Sulawesi, Konawe Industrial Area, Southeast Sulawesi, Bantaeng Industrial Estate, South Sulawesi, Sei Mangkei Industrial Area, North Sumatra and Dumai Industrial Area , Riau.
Investment activities in Indonesia regulated in UU no. 25 Year 2007 regarding Investment. In Article 3 paragraph (1) letter a, it is mentioned that investment activities are organized based on the principle of legal certainty. Meanwhile, the “principle of legal certainty” is a principle in a legal state that places laws and statutory provisions as the basis for any policies and actions in the field of investment.
Economic growth is the result of capital accumulation and investments made primarily by the private sector that can boost economic productivity. This cannot be achieved or realized if it is not supported by the existence of social goods and services such as sanitation and basic public health services programs, education, irrigation, roads and bridges and communication facilities, training and skills programs, and other programs Which benefits society.
As a developing country, Indonesia certainly seek economic development in order to improve the economic progress of the country. Some efforts have been made by the government, one of them is by intensifying investment or inviting people to actively collect funds in the capital market. The more foreign investors who invest in Indonesia, it means in the industrial sector experiencing growth. So the wider employment opportunities for the people of Indonesia, as well as Indonesia little by little can reduce its dependence on other countries. In terms of meeting the needs needed.
Basically, investment can boost the economy so that it can positively impact the growth of the Indonesian economy if the investment is used to open employment and investment in the field of development that can ultimately drive an economy, while hampering growth or which will adversely affect the Indonesian economy if the investment is not Used maximally. That is what will result in these investments may be beneficial or not in the Indonesian economy.
To support the running of investment in order to give a positive impact for the country, community participation is needed to maintain the investment climate. One is to maintain security, this is because the security is very influential on investor confidence.
)* The author is CIDISS Contributor
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