Jakarta – The government continues to encourage the realization of investment and downstreaming in West Nusa Tenggara (NTB) by setting an investment target of IDR 61.09 trillion in 2025.
The target is much higher than in 2024 which was only IDR 26.9 trillion based on the determination of the Indonesian Investment Coordinating Board (BKPM).
The Acting Head of the NTB Investment and One-Stop Integrated Service Agency (DPMPTSP), Wahyu Hidayat, said that his party was still asking for reconsideration regarding the target.
“Yesterday we asked for the IDR 61.09 trillion target to be reconsidered, we asked for it to be adjusted first,” he said.
According to Wahyu, this target increase is quite heavy considering the budget efficiency policy implemented by the central government. This condition has an impact on the operational limitations of the region in pursuing investment.
Previously, the NTB DPMPTSP’s operations relied on deconcentration funds and Special Allocation Funds (DAK), but now DAK has been removed.
“With conditions like this, how do we pursue that target. Yesterday it was IDR 26.9 trillion, now it is IDR 61.09 trillion, he said.
However, investment realization in NTB in 2024 reached IDR 54.5 trillion, exceeding the NTB RPJMD target of IDR 25.4 trillion and the BKPM RI target of IDR 26.9 trillion. This increase was driven by investment in the Energy and Mineral Resources (ESDM) sector which contributed IDR 37 trillion, followed by the industrial sector of IDR 10 trillion, and tourism and the creative economy of IDR 4 trillion.
However, Wahyu assessed that the mining sector cannot be fully relied on because the export permit for AMMAN Mineral concentrate in West Sumbawa ends in December 2024.
So for this, what we are pursuing is the mining derivative industry, he said.
The Head of the NTB Central Statistics Agency (BPS), Wahyudin, also highlighted the impact of the contraction in the mining sector on regional exports.
In January 2025, there will be no exports related to mining products. AMMAN Mineral’s concentrate export permit in West Sumbawa is only until December 31, 2024. Now they are producing to meet the needs of the smelter that has been built in West Sumbawa as well, he explained.
This condition caused NTB’s export value in January 2025 to fall by 97.12 percent compared to December 2024, while import value fell by 51.74 percent in the same period. The local government is now focusing on accelerating downstreaming to maintain the sustainability of investment in NTB.
