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An Enhancement of Investment In Indonesia “Not Consistent But Still Increasing”

Indonesia, a country with a lot of sources which been targeted by another country to take a place on it with “an investment”. The government in this order who have responsibility to organize and carry out a task that will make Indonesia look so good and have more potential point comparing to the others. They also will give an intense attention to the climate of investation in Indonesia and make the economy keep going on followed by the job creation. The government realize that The Indonesian Budget (APBN) cannot single handed to be a single source of fund in development and job creation responsibility.

As a Ministry of Manpower of Indonesia, M. Hanif Dhakiri says that based on World Economic Forum (WEF) data, Indonesia competitiveness is on the 36th position from 137 country all over the world. That ranked was better than the previously where Indonesia only get the 41st position. He also said “The causes of Indonesia’s competitiveness and investment are increasing because there are a development of infrastructure in some region, the development of human resources through investment in education, health, in order to improve the standart of living or welfare of Indonesian”.

Menteri Tenaga Kerja Hanif Dhakiri.
Photo by : UKON FURKON SUKANDA/INDOPOS

An investment service agency of the Indonesian Government called BKPM have a report that show total investment in Indonesia starting from 2014 is Rp 463,1 trillion and in the end of 2017, the investment which come to Indonesia is Rp 692,2 trillion. Indonesia year by year do the improvement and make the investation liven up. President of Indonesia, Joko Widodo on the other side says Indonesia still left behind with “the neighbours” about the increased investment. And again, the data which coming from BKPM show, Indonesia investment value it is only increase 10% in 2017. Apart of it, India have a value until 30% and Philippines raise until 38%. Even Malaysia have a huge escalation until 51%.

Mr.President also claim the main aspect that causes Indonesia left behind from another country is because the regulation problem. In Indonesia, rather than make the regulation easier, the reality are otherwise. Licensing process which needed by the investor, it take too long time to get it. Based on BKPM, for example a power plant licensing process on district area take 775 days. If  this things not solved as soon as possible, Joko Widodo says the economic growth of Indonesia will not well-developed. But in the end, Joko Widodo admit that he still optimistic with the economic growth in Indonesia.

            Indonesia enchacement of investment value in a good condition, because it still increasing year by year, time by time. But it is not consistent when we see the data where Liputan6.com show to us. The investation flow in Indonesia on the 2nd quarter 2018 it is only growth 5,87%, far behind from the 1st quarter that growth until 7,95%. Institude for Development of Economic and Finance (Indef) explain hesitation from the investor to invest their fund that make the flow of investation tend going down on the 2nd quarter. The main problem is exactly the same with Joko Widodo’s statement before, who says the licensing is big problem. The second is about the interest rate and the last problem is about infrastructure condition. Three of them are the problem that Indef found in the reality that make the enchacement of investment value in Indonesia not consistent.

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