Indonesian gov't reveals investment strategy for 8% growth

Indonesia’s National Development Planning Ministry has revealed its investment strategy for clocking 8% economic growth, including providing incentives and support tailored to each sector and region, for industrialization and downstreaming.

The ministry's deputy for economic affairs, Amalia Adininggar Widyasanti, revealed that the incentives will focus on sectors that create high added value, and priority will be given to investments that provide spillovers to the economy and create jobs.

Investments that are connected to domestic industrial processes and micro, small, and medium enterprises (MSMEs); are export-oriented and connected to the global supply chain; involve technology transfer/adoption; help develop research and innovation; and apply the sustainability principle will also be prioritized.

The second strategy, she revealed, is investment development based on regional advantages, with backward and forward linkages to create added value and strong domestic supply chain value.

She noted that an adaptive monetary and financial sector policy provides various alternative sources of funding for investors, including banks, capital markets, and other financial products.

Indonesia will work to improve the investment and business climate, certainty of policies and laws, and synchronization and harmonization of policies between central and regional governments and between sectors, she said, adding it will also ensure the availability of infrastructure and connectivity, availability of raw materials, human resources, green energy, and healthy business competition.