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Kamis, 21 November 2024

Ministry of Investment and Downstream Industry Prepares Strategies to Achieve 8% Economic Growth Target

Jakarta, November 21, 2024 – Vice Minister of Investment and Downstream Industry/Deputy Head of the Indonesia Investment Coordinating Board (BKPM), Todotua Pasaribu, stated that Indonesia requires investment realization of IDR 13,528 trillion over the next five years to achieve the targeted economic growth rate of 8%. This statement was delivered during the Discussion Forum themed "Investment Strategies for Building a Sustainable Economy", in collaboration with CNN, on Tuesday (20/11). Todotua emphasized that this investment target is also expected to create 3.74 million jobs, aligning with the Ministry of Investment and Downstream Industry/BKPM's focus on supporting sustainable economic growth.

“There are three fundamental factors in achieving 8% economic growth. First, we must boost investment, particularly in the context of downstreaming. Second, we need to implement digitization to streamline the economy and investment realization. Third, equally important is addressing green economy funding,” Todotua explained.


In his presentation, Todotua elaborated that President Prabowo’s Asta Cita vision prioritizes downstreaming as a strategic initiative to drive sustainable economic growth. This initiative aims to enhance national self-reliance through food, energy, and water security, as well as green and blue economy development. Moreover, promoting the creative industry, generating quality jobs, and strengthening entrepreneurship are integral components of this strategy.


Todotua also highlighted the importance of building superior human resources in areas such as science, technology, education, healthcare, gender equality, and empowerment of women, youth, and people with disabilities.


According to Todotua, much of the Asta Cita vision aligns with the Ministry of Investment and Downstream Industry/BKPM's mandate, particularly in advancing downstreaming and industrialization to add value within the country. These efforts form the foundation for sustainable economic development that directly benefits society.


“We aim to optimize the utilization of natural resources to generate significantly greater added value, increase state revenue, and accelerate national growth,” Todotua added.


The Ministry has developed a roadmap for downstreaming 28 strategic commodities across eight key sectors. This roadmap offers investment potential of USD 618.1 billion, projected to create over 3 million jobs and contribute USD 235.9 billion to the Gross Domestic Product (GDP).


Todotua also revealed that the Ministry has identified nine quick-win programs to drive investment and support downstreaming. These include optimizing fiscal incentives such as tax holidays, integrating digital systems across ministries, and developing strategic investment zones. Additionally, the Ministry is addressing investment barriers, including resolving issues faced by five companies with a total value of IDR 556 trillion. These programs aim to provide business certainty and enhance Indonesia’s attractiveness as a global investment destination.


Echoing the Vice Minister of Investment and Downstream Industry, CNN Indonesia’s Director, Desi Anwar, stressed the role of investment and downstreaming in achieving the 8% economic growth target and eradicating poverty. She acknowledged the significant challenge for the Ministry to attract robust investment interest.


“This forum is vital to determining how we achieve development targets in a sustainable and environmentally friendly manner. The greater challenge lies in securing the necessary investments,” Desi remarked.


During the panel discussion, various stakeholders expressed support for accelerating investment through green economy-based downstreaming. The Indonesian Employers’ Association (APINDO) underscored the importance of developing the green economy sector as a backbone for national growth, leveraging potential such as critical minerals and carbon capture technology. Meanwhile, the Indonesian Young Entrepreneurs Association (HIPMI) emphasized the role of local entrepreneurs in supporting downstreaming, particularly outside Java, with a focus on minerals, oil and gas, and plantations. INDEF highlighted the need for a balanced "carrot and stick" approach to ensure sustainable investment, combining adequate incentives with stringent regulations. The forum reinforced the importance of collaboration among the government, businesses, and the public in creating an inclusive and sustainable downstreaming roadmap.


Attended by over 100 participants from the financial, investment, manufacturing, and various industrial sectors, the discussion forum provided deeper insights into investment policies and strategies, along with incentives available to investors. The forum also spotlighted attractive investment opportunities in Indonesia, supported by optimal strategies for both domestic and foreign investors. Dedi Latip, Deputy for Investment Planning at the Ministry of Investment and Downstream Industry/BKPM, was also present.


For further information, please contact:

Ahmad Faisal Suralaga

Head of Communications and Information Services Bureau

Ministry of Investment and Downstream Industry/BKPM

E-mail: humas@bkpm.go.id

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