BKPM’s Strategies to Recover Investment in 2021

Chairman of Indonesia Investment Coordinating Board (BKPM) Bahlil Lahadalia proposes six investment recovery strategies in 2021 to pursue next year’s investment realization target which is set at Rp858.5 trillion. “We propose that there are six main programs as instruments for achieving the investment objectives to reach Rp858 trillion and encourage economic growth (2020-2021), “Bahlil said in a joint meeting with the Indonesian House of Representatives Commission VI in Jakarta, Tuesday (6/23).

The first strategy is to execute stalled investments and large scale investments. According to Bahlil, this needs to be done by visiting investors and ensuring they are assisted until their investment is realized. “We have to come, ask what their problems are. Don’t wait for them to come to us. This country needs jobs, then we prepare it. And investment is the only way to create jobs,” said Bahlil.

Secondly, namely to compile a map of regional investment potential. BKPM has sent a letter to the Ministry of PPN / BAPPENAS regarding the proposal. “BAPPENAS agrees with our proposal to create a map of the regional investment potential that we synergize with existing ministries/institutions This map will be the promotional material used by Ambassadors and representatives of BKPM to attract investors”, said Bahlil. The third strategy, continued Bahlil, is to facilitate foreign investment relocation to Indonesia. He hopes that what happened in 2017-2018, where investments from China prefer to relocate their industry to Vietnam will not happen again.

“We’ve done our part, InshaAllah, the case of 2017-2018 will not happen now. Let the data be conveyed by the President. InshaAllah, there is good news,” he added. The fourth strategy, continued the former HIPMI Chairman, is to implement debottlenecking and aftercare investment through mentoring investors. Bahlil said that he had formed a special task force that conducted intelligent marketing to industries that would leave China and research for investment facilities provided by competing countries. According to him, this is important to attract investors into the country. The fifth strategy, which is to expand the positive list of investments. However, he emphasized that the expansion of the positive list of investments is excluded for the MSME sector which must have a special place in the country.

The final strategy is to conduct deregulation and licensing integration. Bahlil said this needs to be done by having all the licensing applications and integrating them with those at the central and regional levels. “We used to just command the regions to build the application themselves. There were applications Si Cantik, Si Jelek, Si Norak, a lot. But not aligned. We want the central government to integrate everything in the future, we sure will provide them the hardware and software “Bahlil said.