Photo Credit : Industry Ministry

JAKARTA (TheInsiderStories) – The government has announced that the realized investment in industrial sector in 2017 reached US$21.6 billion with total 256 projects, showing the greatest investment level, Minister of Industry Airlangga Hartarto said.

Overall, new investment commitments in Indonesia as of Dec. 14, 2017, reached US$42.6 billion, with a total of 1054 projects. This achievement marks a 23.7 percent increase over that of 2016.

“The government is continuously striving to create a conducive business climate, as well as to facilitate domestic business, so investors can increase their investment, to build a more inclusive and quality national economy,” Minister Hartarto said in Jakarta on Friday (12/1).

He said investment in industrial sector contributed nearly half of the total investment. The tourism sector contributed US$17 billion, with 159 projects, public works and public housing US$1.2 billion, with 98 projects.

Furthermore, the energy and mineral resources sector marked US$1.18 billion with 32 projects, trade US$920 million with 427 projects, agriculture US$270 million with 22 projects, and other sectors US$430 million with 60 projects.

Hartarto affirmed that government and stakeholders will continue to synergize to improve competitiveness and attractiveness for investment in the industrial sector, among others through the creation of a conducive business climate and more legal certainty, the use of the latest technology to encourage the improvement of quality, efficiency and productivity, and fiscal incentives.

This must be supported by the availability of raw materials, competitive energy prices, competent human resources (HR), as well as more streamlined market access and financing.

“Consumption growth also needs to be maintained and improved so that demand for industrial products keeps rising,” he added.

The commitment to increase new investment is based on Presidential Decree No. 91 of 2017 on Regulation of Accelerated Enforcement of Business. It is also motivated by the collaboration of two separate Task Forces, the Economic Policy Package Task Force and the Task Force for Acceleration of Enforcement.

To spur the implementation of investment and facilitate doing business in Indonesia effectively, the two task forces have modernized all investment and business processes in Indonesia, into an integrated online protocol.

The Government has set a target for the value of investment that can be drawn from 13 industrial areas amount Rp250.7 trillion by 2018.

“The government has moved to ease investing in industrial areas, among others through the provision of fiscal and non-fiscal incentives and the formation of task forces for the provision of gas, electricity, water, human resources, land, spatial resources, and so on,” he explained.

Meanwhile, according to the Minister of Industry, the overall projection for investment in the manufacturing industry this year is set at Rp352 trillion (US$24.6 billion).

“This is achieved with investment in the industrial sector, creating new jobs and multiplier effects such as enhanced added value and foreign exchange earnings from exports. Industry thereby becomes a main support for the economic growth target,” he explained.