Global Investor Trust in Indonesia Improving: Investment Minister

TEMPO.CO, Jakarta – Foreign investors’ confidence in Indonesia is starting to improve, in line with the 8.3-percent investment growth in the second quarter of 2021, Investment Minister Bahlil Lahadalia has said.

“In 2021, we are targeting an investment of Rp900 trillion, of which 49.6 percent has been realized. Of the 49.6 percent, foreign direct investment is recorded at 50.5 percent. This means that the trust of global stakeholders in Indonesia has slowly begun to improve,” Lahadalia, who is also head of the Investment Coordinating Board (BKPM), informed here on Tuesday.

He made the statement during a virtual dialogue on ‘Post Pandemic Economic Recovery: Attracting Investment through Structural Reform’, held by EuroCham and the Investment Ministry/BKPM.

Furthermore, the improving global confidence is evident from European countries emerging as the largest investing countries in Indonesia, the minister said.

According to data from the ministry, in the first quarter of 2021, Switzerland was among the top five countries investing in Indonesia. Meanwhile, in the following quarter, the Netherlands emerged as the third-largest investor in the country, Lahadalia noted.

Hence, the government will continue to make efforts to provide certainty, convenience, efficiency, and transparency to investors, he said.

Some of the strategies which have been carried out by the government to this end comprise the implementation of the Job Creation Act and the Risk-Based Online Single Submission (OSS) system for investment licensing services.

During Tuesday’s discussion, Chairman of EuroCham Julien Steimer informed that a number of European companies in Indonesia have confirmed their commitment to continue investing in the country. Steimer — on behalf of the European companies — also expressed his appreciation for the reforms carried out by the Indonesian government to facilitate the cooperation between European and Indonesian business actors.