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Sabtu, 12 Oktober 2024

Minister of Investment Reveals Key to Achieving 8 Percent Economic Growth

Nusantara Capital City, 12 October 2024 — Minister of Investment/Chairman of the Investment Coordinating Board (BKPM) Rosan Roeslani has revealed that the key to an economic growth of 8 percent is ramping up export-oriented and sustainable investments.

According to Rosan, domestic consumption and investment are now contributing greatly to the national economic growth. To reach a higher growth, investment proportion has to be increased.


“If we look at the structure of the economic growth, the largest share came from our strong domestic consumption, now around 53-54 percent. The second largest came from investment. Investment is now about 24-25 percent. In the past, our consumption could reach 57-58 percent and investment was 30 percent or more. Now, it’s just 24-25 percent,” unveiled Rosan in the Kompas100 CEO Forum held in Nusantara Capital City on Friday (11/10).


Rosan stressed that increasing investment proportion must be pushed, particularly in the strategic sectors such as clean energy and electric vehicle (EV) manufacturing. According to him, the government would direct investment toward sustainable industry, befitting global demands.


“We want investment oriented toward export and to be conducted sustainably. That’s the theme we will push for going forward. Because global demands are heading there; that we have to undertake this sustainably,” said Rosan.


Clean Energy-Based Industrial Estate

Furthermore, Rosan also emphasized the need to push for more establishments of industrial estates running on clean energy. According to him, the market demand is now heading for the green industry to attract interest from international investments, especially from the sectors focused on decarbonization.


“If we’re talking about attracting investment in the sectors of EV manufacturing, EV car, EV battery, they demanded the source of energy to come from clean energy. Why? So it aligns with their vision,” he said.


Rosan also unpacked the government's plan in accelerating the establishment of industrial estates with clean energy in Indonesia. According to him, investors from developed countries have generally channeled investments in such sectors.


“I was just in Singapore, meeting with Sembcorp. They have invested in 13 green industrial estates in Vietnam, and the amount will increase to 18 by the end of this year,” said Rosan.


Business Permit Regulation Certainty

Apart from developing sustainable export-based industry, Rosan also underscored the importance of maintaining certainty and clarity of regulation so businesses, both domestic and foreign, could undertake their investments measurably.


“As it happened, I was a businessman, so I know exactly what the problem is. We businesses dislike uncertainty the most. We want everything calculated and structured,” Rosan explained.


Although the government has imposed a standard time for permit processing through an agreement with the 18 ministries involved, Rosan highlighted that the reality on the ground has often fared worse than the expected target.


“We have an agreement with 18 ministries in the form of service level agreement. For example, this permit must be wrapped up in 3 days, the other 5 days. But how it played out, it might take 6 months, 3 months, or even a year,” explained Rosan, pointing out the inconsistency between the agreement and its execution.


Rosan asserted that, in the future, the government would be more resolute in ensuring that every institution would abide by the agreed-upon agreement regarding time for permit processing, remembering that the government has the legal foundation in place to ensure it.


“We will send letters to the 18 institutions to ensure that they would comply with the service level agreement. If the agreement is 3 days, but they do not issue the permit, then I will issue the permit myself; so businesses, both domestic and foreign, know exactly when they will have the permit. That’s the certainty that we will provide,” Rosan declared.


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