From the data published by Indonesia Investment Coordinating Board (BKPM), Indonesia has reached 210.7 trillion Rupiah of investment realization, still far behind from the target of 886.1 trillion Rupiah. Looking at this problem, BKPM has arranged several steps to boost the investment rate by facilitating the business operation, especially within the three investment priorities sectors during the pandemic.
BKPM foresees a significant decline in the investment realization during the second quarter of 2020. Without a doubt that Indonesia’s investment state will experience a massive impact due to the ongoing COVID-19 pandemic. BKPM Chairman Bahlil Lahadalia stated that BKPM will continue its effort to promote small to big investment in Indonesia.
In doing so, BKPM has become more focused on three specific investment priorities sectors during the pandemic, the manufacturing, downstream, and medical devices industries. BKPM has coordinated with the Association of Medical Devices and Laboratory Equipment (GAKESLAB) as well as the Indonesian Private Hospital Association to further discuss the calculator steps needed to accelerate the investment growth in the medical devices sector.
According to Bahlil, BKPM will focus on bringing special investments for the health and medical industry. BKPM has also received several prospective investors. Applying a slightly different approach than before, Bahlil explained that BKPM is focused on tracking both foreign and domestic investors, as he claimed that the realization of domestic investment is higher than the one of foreign investment for the first time ever.
Apart from the three investment priorities sectors during the pandemic, Sandiaga Salahudin Uno urged people to see the pandemic as a newfound opportunity to invest in the telecommunication technology, Massive Online Open Course (MOOC), digital, food, biotechnology, legal services, and clean energy - as these sectors gain massive profits due to the Large-Scale Social Restrictions (PSBB) issued by the government during the virus outbreak.
These specific investment priorities sectors during a pandemic are the ones that are still able to create jobs, seeing that now the rate of unemployment keeps on increasing. “Investing must have a goal that is to improve community welfare. We must plan a positive and sustainable impact on building this country, and I believe this moment is the right time. Create workforces and strengthen our economy so that it can withstand the turmoil of this pandemic,” said Sandiaga Uno about the correlation of investment and employment in Indonesia.
The service industry will not be able to thrive in this pandemic, therefore unable to open more job vacancies and many have chosen to discharge many employees. This is one of the main reasons why the government and BKPM plan to focus on the three specific investment priorities sectors during the pandemic, mainly the manufacturing industry. Now that most investors have left China, the biggest manufacturer in the world, this is the glowing opportunity for Indonesia to seize more investors and enable more employment.
BKPM has devised a 3+1 strategy, consisting of optimizing existing investment realization, completing stalled investment projects, promoting investment, and building inward consolidation as preparation for the new normal or post-pandemic era.
BKPM is ready to facilitate existing business, stalled business, attracting new investors, and providing incentives to operating businesses that are ready to expand. “The winning nation in the year of 2021 is the one that can consolidate inward, which involves three parties: communities, government, and entrepreneurs.” These efforts are in line with BKPM innovation for enabling a more seamless and digital process of business permits via OSS.