Speaking at the 2023 National Investment Coordination Meeting in Jakarta, Thursday (7/12/23) President Jokowi urged regional leaders to encourage investment outside Java, according to reporting from Antara News.
The president said that Java receives 48-percent of investment in Indonesia, while the remaining islands combined only get 52-percent. “The number should be bigger,” he said, and he called on governors, mayors, district heads, and heads of one-stop integrated services (PTSP) to increase investment outside Java. His side will also extend help for the infrastructure in areas outside Java.
Antara News say that, according to Jokowi, investment is crucial to boosting economic growth. Apart from creating more job opportunities, investment is also capable of providing large state revenues through Corporate Income Tax (PPh), Employee Income Tax, Export Tariff, and Non-Tax State Revenue (PNBP).
Jokowi emphasized that investors should be encouraged to collaborate with national and regional entrepreneurs, not only to increase dividends but also to push for equal development.
“I always ask investors to partner with national entrepreneurs and regional entrepreneurs. No matter how big the shares are, at least our domestic entrepreneurs are involved,” he said.
Jokowi then emphasized that Indonesia should continue to improve the investment climate both on a national and regional scale, especially on land acquisition and licensing issues, say Antara News.
He added that Indonesia has, so far, only focused on marketing while attracting foreign investors. However, other crucial aspects, such as land acquisition, are ignored, and investors are forced to withdraw their investment.
“It is useless to promote investment in Indonesia without paying attention to land acquisition. We promote our country for nothing if the permits need years to be completed,” he said.
Jokowi also said that the government has targeted an investment value of IDR 1,650-trillion for this year. This figure is considered to increase economic growth by 5.1 to 5.7-percent.
“I believe that all of our hard work will be able to complete the investment target we have set at IDR 1,650-trillion,” he said.
Source: Antara News
Stock photo by Tom Bixler on Unsplash
