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Jakarta Post

Private investment contributes 77 percent to economic growth, says Jokowi

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Thu, February 20, 2020   /   03:19 pm
Private investment contributes 77 percent to economic growth, says Jokowi President Joko 'Jokowi' Widodo (right) answers reporters questions at the State Palace in Central Jakarta on Feb. 12. (Presidential Press Bureau/Muchlis Jr)

President Joko “Jokowi” Widodo has called on regional administrations to fully cater to investors’ needs in starting businesses to boost investment, which plays a major role in the country’s economic growth.

He said the state budget contributed only 16 percent to the country’s economic growth. The figure increases to 23 percent if the state budget is combined with the regional budget.

“This means that private businesses and investment contributed 77 percent to our economic activity. This shows how important businesses and private investment are to our economy in creating jobs,” Jokowi said in his remarks at the National Investment Coordination Meeting in Jakarta on Thursday.

Regional leaders and one-stop services, he went on to say, should fully serve all investors and the services should be extended to all investors, big or small, as small and medium enterprises (SMEs) also created jobs that could help boost economic growth.

Read also: Foreign investment rules may be issued before omnibus laws: Senior minister

The country’s gross domestic product (GDP) grew 5.02 percent last year, lower than the 5.17 percent recorded in 2018. Investment, which is the second-largest contributor to GDP after household spending, expanded 4.06 percent in the fourth quarter, slower than 6.01 percent growth booked in the same period in 2018, Statistics Indonesia data shows.

Jokowi also instructed one-stop services to approach businesses.

“One-stop services should visit small shops, warungs and auto repair shops and give them business permits so they can gain easier access to financing,” he said.

He instructed regional administrations and one-stop services to help investors resolve issues so projects did not stall, as the realization of Rp 708 trillion (US$51.7 billion) worth of investment was halted last year.

“They can create so many new jobs for our people,” he said.