IFCCI organized a Forum Group Discussion on “Indonesia Investment Outlook for 2017: A Look Back on Indonesia’s Economic Policy Packages” on 11 January 2017 at Board Room, Financial Club.
In 2017, the investment target for Indonesia is IDR 678.8 trillion, and France ranks as the 16th country to invest most in Indonesia connoting that there is more that needs to be done to attract more French investors. In 2016, the top five sectors that the French invest in are (1) hotel and restaurant; (2) electricity; (3) gas and water; (4) industrial state and office; and (5) trade and reparation. BKPM has taken steps to make doing business in Indonesia a lot easier for foreign investors, such as the One Stop Service (OSS). Now there is also a three hour service to support the tax amnesty program available for companies and tax payers.
Indonesia’s main goals to help grow the economy are to build infrastructure, manage the state budget effectively, have a strong and good record of drawing in foreign investment, and facilitate foreign investment. One of Indonesia’s stronger points is maritime, and consequently, the next economic policy package that will be implemented will regulate the maritime industry so that export and import procedures for spare parts of maritime transportation will be a lot easier and the growth of the ship industry will be accelerated. In addition, President Jokowi has also established a strategy for maritime connectivity to develop an international port hub.
The fourteen economic policy packages were made and implemented with the aim to make doing business in Indonesia easier. Thirty seven regulations were deregulated based on ten indicators from a benchmark study from the World Bank which is aimed to attract more foreign investors in Indonesia. Four working groups have been made who will be in charge of the economic policy packages and are now grouping them into six thematic issues. The Indonesian economy is definitely showing progress with the rise of its rank in the World Bank report of ease of doing business rose to 91, the first time Indonesia has held a double digit ranking.
Thank you to Mrs. Farah Ratnadewi Indriani, Deputy Chairman for Investment Climate and Development at the Indonesian Investment Coordinating Board (BKPM), Mr. Edib Muslim, Member of the Task Force for Acceleration and Effective Implementation of Economic Policy at the Coordinating Ministry for Economic Affairs, Mr. Joel Shen, Foreign Counsel at Christian Teo & Partners, and also Mr. Christopher Johnston as the moderator of this event.
We believe the participants found the discussion informative and fruitful. Thus, we appreciate the valuable contribution of each speaker’s presentation which have given us a better perspective on the economic policy packages and outlook on the Indonesian economy for 2017.
Once again, thank you to those who attended this interactive group discussion. We look forward to having another fruitful discussion with all of you in the next IFCCI forum group discussion.