Finance Minister Sri Mulyani Indrawati give her speech at the US-Indonesia Investment Summit 2018 (27/09) - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Indonesian finance Minister Sri Mulyani Indrawati said the Indonesian leaders will face three issues human capital, infrastructure gap and investment issues. As we know, Indonesia now in the process to elect the new president and vice president candidates to lead the largest country in the Southeast Asian region

In her views, the leaders need to focus on the tree issues to face the global shocked and to develop the country’s economy. The other issues has become the leaders to overcome are the trade war and geopolitical issues, adds by Indrawati.

“Who ever lead this country they will face three issues namely human capital, infrastructure and investment climate. Infrastructure is important for Indonesia because we have a lack since crisis,” she told the American Chamber members on Thursday (27/09).

The minister said, the country need to improve the investment climate especially in manufacturing and other sectors that have an export oriented. The government also focus to build human resources development and the infrastructure projects to drive the domestic economy.

According to her, the government have a immediate short time measures to face the three issues like hiking import income tax article 22 for 1,147 products, improve the use of fuel with a mixture of 20 percent biodiesel (B20), and improve of local content use.

“We also reviewing lot of projects and use all tools to attract more investment. We also revised the tax holiday more easily for the investor,” said by the minister.

Talking about, Indonesian economy, Indrawati assured, that the State budget situation is in a good condition. She gave an example the State revenues roses 7 percent compared to last year, tax revenues jumped 18.5 percent and the government spending robust closed to 9 percent.

“Our primary balance currently Rp84 trillion (US$5.79 billion). Our budget is healthy. We are able to intervene and to be stabilize if you should do,” she stated.

Commenting on the Indonesian economy, United States (US) Ambassador for the country Joseph R. Donovan said, 2019 will be a major milestone for both countries to strengthen the relationship. The visited by Secretary of State Mike Pompeo on August 6, he said is part of the US’s government strategy for economic engagement with Indo-Pacific region.

Donovan continued, US investment touches nearly every sector of the Indonesian economy, ranging from commodities, manufacturing to services. He stated, “This investment has played a key role in Indonesia’s economic, providing billions of dollars in capital and helping to create jobs for millions of Indonesian worker.”

Meeting the needs of Indo-Pacific nations in energy, infrastructure, digital economy and human resources development will take a staggering amount of Investment. The Asian Development Bank estimated that $26 trillion will needed by 2030 and Indonesia’s current infrastructure push likewise needs trillions of Rupiah to succeed.

“We are recognize that no government can mobilize the resources to accomplish these tasks alone. But we also know thre is over $50 trillion of private capital sitting on the side-lines in banking center such as London, New York, and elsewhere,” he stated.

The ambassador stressed it, the catalyze private sector economic engagement, government regulations should foster, rather stifle, private initiative. Local content and manufacturing requirements, he added, may aim to increase opportunities for local firms, but have the effect of discouraging economic partnerships.

“For this reason, it remains important for Indonesia to continue to improve its investment climate to attract investment and to pursue policies treat companies equitably, regardless of whether they are domestic or foreign. A level playing field for competition best serves everyone’s interests,” he ended he remarked.

Email: linda.silaen@theinsiderstories.com 

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