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Jakarta Post

Stoking investment, growth

Jakarta   /   Mon, June 3, 2019   /  01:05 pm
Stoking investment, growth Regulatory framework for FDI: Financial Services Authority (OJK) chairman Wimboh Santoso (center) speaks at the first Next Indonesian Unicorn (NextICorn) Summit in Nusa Dua, Bali, accompanied on stage by Investment Coordinating Board (BPKM) chairman Thomas Lembong (left) and Bank Indonesia’s head of Payment Systems Policy Onny Widanarko. Wimboh spoke on the regulatory framework for foreign direct investment (FDI) in the digital economy. (JP/Zul Trio Anggono)

Indonesia’s gross domestic product (GDP) growth has averaged 5 percent in the last few years, lower than the government target. Meanwhile, the manufacturing sector has continued to decline and our current account deficit has widened. Is there a magic bullet that can solve all three? The drop in manufacturing growth and commodity prices resulted in slower growth. Also, foreign direct investment (FDI) declined 9 percent in 2018. Although FDI fell 19 percent globally, emerging Asian countries actually saw a rise of 5 percent, with Vietnam a clear winner. It is useful to first take a look at how FDI can help domestic investments. We must understand that production in any country is today part of a global supply chain and we also need to recognize that now is time for Indonesia open up to gain FDI. FDI complements domestic investments through the production chain. Foreign firms...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.