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‘Don’t be allergic to investment’: Government goes all out to lure funds in 2019
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President Joko "Jokowi" Widodo. (Twitter/@jokowi)
T
he government has gone all out in luring investment to Indonesia as part of its efforts to revive the country’s manufacturing sector and improve its export performance to spur economic activity amid looming external risks.
When he addressed his supporters in Sentul, West Java, in July, President Joko “Jokowi” Widodo emphasized that attracting investment would be one of his priorities in his second term.
“No one should be allergic to investment. This is how we create as many jobs as possible. Therefore, anything that obstructs investment must be trimmed, such as slow or complicated permit processes, especially illegal levies,” said Jokowi.
Investment, which accounts for more than a third of Indonesia’s gross domestic product (GDP), has steadily declined since last year’s third quarter. Year-on-year (yoy) investment growth stood at 4.21 percent in the third quarter of this year, significantly lower than the annual growth rate of 6.96 percent booked in the third quarter of 2018, Statistics Indonesia (BPS) data show.
Indonesia’s economy expanded by 5.02 percent yoy in the third quarter of this year, with household spending and net exports – thanks to imports falling more steeply than exports – buoying overall GDP growth.
After his inauguration on Oct. 20, Jokowi laid out the groundwork of several policies aimed at opening up the country to more foreign investment.
