The Ministry of Investment/Investment Coordinating Board (BKPM) is targeting investment realization in 2025 to reach IDR1,900 – IDR2,000 trillion or an increase of around 16% from the 2024 target.
At the 2024 Central Banking Services Festival held by Bank Indonesia in Jakarta, Wednesday (27/8), Deputy Minister of Investment Yuliot Tanjung said that to achieve this target, the government will consolidate various policies that have been running separately.
According to him, there are four main pillars that will be the focus of the government to be consolidated, namely investment policy, industrial policy, financial policy, and trade policy. The integration of the four pillars is expected to increase investment competitiveness in Indonesia.
First, regarding investment policy. Yuliot said that there needs to be ease of business licensing, more attractive incentives, and adjustment of investment policy to global developments, including the implementation of a global minimum tax or global mininum tax (GMT).
The government has currently provided various fiscal incentives to attract investment, including income tax exemptions for a certain period (tax holiday), income tax reductions (tax allowance), and import duty exemptions.
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Second, Yuliot assessed that industrial policies in various ministries and institutions must also be integrated, including integrating downstream programs to increase the competitiveness of domestic industry.
The third pillar is financial policy. Yuliot highlighted the importance of financial support from financial institutions in supporting the implementation of investment activities. “So from financial policies, we must integrate and map out how to support it,” he said.
The fourth pillar is trade policy. He said the government will try to create a conducive trade climate by reducing various obstacles in the flow of goods in and out.
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“We must ensure the smooth flow of goods from imports or exports, because if there are too many barriers it will hamper investment activities,” he concluded.
On that occasion, Bank Indonesia and the Ministry of Investment signed a memorandum of understanding (MoU) to strengthen synergy and coordination between the two institutions in increasing investment and competitiveness to support sustainable economic growth.
The signing was carried out by Investment Minister/Head of BKPM Rosan Roeslani and Bank Indonesia Governor Perry Warjiyo, who attended virtually. (Ant/N-2)
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