JAKARTA (TheInsiderStories) - Head of the Investment Coordinating Board, Bahlil Lahadalia announced Dutch’ FrieslandCampina BV, through its unit Frisian Flag Indonesia aimed to increased their investment around EUR270 million (US$321.43 million) in the country. Other companies has shown their interest to invest in Indonesia are Verstegen Spices & Sauce B.V. and Wavin B.V.
He said in an official statement released on Nov. 24, Verstegen will open 40,000 hectares of land for nutmeg plantations in Fakfak and Kaimana regencies, West Papua, which is expected to be realized in 2021. While, Wavin plans to build a factory with a total investment value of $125 million and targeting can start producing in 2022.
Lahadalia has reported, in nine months (9M), foreign direct investment in Indonesia dropped by 5.1 percent from Rp317.8 trillion (US$22.54 billion) in 2019 to Rp301.7 trillion in the same period of 2020. However, the domestic direct investment jumped 9.3 percent to Rp309.9 trillion from Rp293.5 trillion in 9M of 2019.
In total, the country posted an investment realization of Rp611.6 trillion or only rose by 1.7 percent compared to 2019 with worth of Rp601.3 trillion. In third quarter only, total investment jumped 8.9 percent from Rp205.7 trillion to Rp209.0 trillion.
While, The FDI rose 8.7 percent, a first growth in this year, to Rp106.1 trillion from Rp105.0 trillion and the DDI up 9.1 percent from Rp100.7 trillion to Rp102.9 trillion. Based on areas, the realization of investment in Java is Rp98.6 trillion or 47.2 percent of the total investment and Rp110.4 trillion or 52.8 percent is located outside Java.
Lahadalia noted, the critical period for investment realization in the COVID-19 pandemic era is over. He believed, in the next quarter, the amount will be higher than this quarter. The reasoned, he is optimistic that the existence of the omnibus law, which is expected to be implemented this year is able to overcome a number of regulatory obstacles and ease of licensing.
The government has also delegated licensing authority from the ministries and institutions back to his office via One-Stop Integrated Service policy. Permits that enter the area will be submitted to the Online Single Submission, he adds. The chairman revealed that fiscal incentives such as tax holidays, tax allowances and super tax deduction have also been delegated to his office by the finance ministry.
Now, he continued all permits and fiscal incentives can be given by the office, for the sake of accelerating investment realization. He also pledged to improve Indonesia’s ranking in the World Bank’ Ease of Doing Business index from the current at 73rd to 60th in 2021 and expects to 40th in the four next year.
US$1: EUR0.84, Rp14,100
Written by Staff Editor, Email: theinsiderstories@gmail.com
