Jakarta, CNBC Indonesia – Investment Minister Bahlil Lahadalia invites investors to invest in Indonesia armed with technology and capital. With these two capitals, the state guarantees that it will take care of business licenses and industrial locations.
“With tagline new ones, please investors bring technology, capital and some capital. Later the permits and industrial locations will be handled by the participating countries, this is a good collaboration between business actors and the government,” Bahlil said at the Indonesia Investment Forum 2021 virtually, Thursday (27/5/2021).
Indonesia, said Bahlil, is one of the countries with the best investment destinations. First, because Indonesia’s economic growth is still better than other G20 countries.
As for last year, the Indonesian economy was minus 2.19 percent and began to recover in the first quarter of 2021 to minus 0.74%.
“The economic growth is better than other countries in Southeast Asia, even our GDP growth compared to the G20 is better, we are number two after China,” he said.
Investor confidence in Indonesia to date, said Bahlil is also still maintained. The total investment that entered Indonesia during the past year was IDR 827 trillion
Throughout 2020, the realization of Foreign Investment (PMA) was IDR 412.8 trillion, or only down 2.4% compared to the same period last year of IDR 423.1 trillion. Meanwhile, he stated that FDI in a number of countries fell sharply during the COVID-19 pandemic.
“FDI (Foreign Direct Investment) we decrease it is not too big, not more than 10%. The world’s trust in Indonesia in investing is still maintained,” he said.
Another reason why other countries should invest in Indonesia is because Indonesia has abundant natural resources. Starting from fisheries, mining, forestry, they have tremendous potential to be developed.
Indonesia also carried out regulatory reforms with the Job Creation Law which provided improvements for the business world. So, continued Bahlil, entrepreneurs will get certainty, ease of efficiency and transparency.
“In the past, we had to admit that Indonesia’s regulations were not centralized, the issue of licensing is now in 18 K/L that issue permits through OSS managed by the Ministry of Investment/BKPM,” he said.
He is optimistic that Indonesia will still be one of the investment destinations.
In addition, the government is also preparing an economic zone to accommodate the investment. One of them is the Batang Industrial Estate, Central Java, which is very strategic because it is close to toll roads, ports, and railroads.
“I guarantee that the land here (Tang Industrial Area) is cheaper and clear and clean, later the government under the Ministry of Investment will help all of you (investors),” he explained.
Investors’ Confidence in RI is Maintained
On the same occasion, Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan agreed with Bahlil’s statement.
Luhut explained that global investor confidence in Indonesia can be seen from a number of debt bond rating agencies that maintain Indonesia’s debt rating at an investment grade level.
Starting from a rating agency from Japan, Rating and Investment Information, Inc (R&I) by maintaining Indonesia’s sovereign credit rating at BBB+ with a stable outlook on April 22, 2021. With this rating, Indonesia is categorized as investment grade or investment worthy.
R&I previously raised Indonesia’s debt rating from BBB with a stable outlook to BBB+ with a stable outlook (investment grade) on March 17, 2020.
Furthermore, Fitch, an international rating agency, maintained Indonesia’s foreign debt rating at BBB or investment grade with a stable outlook as of March 19, 2021. This rating has not changed since August 10, 2020.
Meanwhile, Standard and Poor’s (S&P) maintained its foreign debt rating at BBB level with a negative outlook on April 22, 2021.
“This means that foreign countries still see Indonesia as a credible country for investment. If we look at Fitch, S&P, and Moody’s, they still give stable ratings even though they have downgraded many countries, for example Italy, Mexico, South Africa,” he said.
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