Wednesday, 07 April 2021 08:57

Head of LIPI: Coordination Between Government Agencies is the Key to Increasing Investment

The speed of coordination between government agencies is the key to increasing investment in Indonesia. Head of the Research Center for Economic Affairs of the Indonesian Institute of Sciences (LIPI), Agus Eko Nugroho said, that investors investing in Indonesia need special appreciation and attention. The reason is, in the midst of the Covid-19 pandemic conditions and a sluggish economy, they still intend to invest.

Therefore, he said, the government needs to assist and facilitate them in realizing their investment, as well as resolving all the obstacles. Do not let investors have expressed their interest in Indonesia, but the realization of investing in other countries. Like Tesla, which was originally rumored to be building an electric car factory in Indonesia, but ultimately chose India.

According to Agus, the incentive facilities provided by the government are already very competitive with other countries. For example, tax breaks or super tax deductions for certain industries. However, if the investment does provide a large multiplier effect, it could be given other tax facilities.
According to Agus, this is very important in polishing our investment conditions. "It remains how fast the response from the government in providing such services," said Agus, Tuesday (6/4/2021).

Moreover, he continued, this investment involved a lot of coordination between government agencies. For example, if it is related to taxes, then the coordinating institution starts from the Ministry of Finance, BKF, BKPM, Ministry of Industry, and others under the Coordinating Ministry (Kemenko) Maritime and Investment (Marves) and the Coordinating Ministry for the Economy. "Communication and coordination between agencies and ministries must be concrete and fast in responding to changes in the tax rate structure for certain sectors that really need it," he said.

According to Agus, currently, there are actually many investment opportunities that can be offered to investors. For example, related to products related to Covid-19 or Health. In addition, there are industries related to innovation and technology. "These investments have a concrete direction and can facilitate changes in public consumption, which is currently experiencing a change in trend," he said.  Apart from facilitating investors in realizing their investments, what is also the government's homework is to maintain public confidence regarding the Covid-19 vaccine. By providing confidence about the vaccine program, it can encourage public consumption. Based on research conducted by LIPI, currently, people prefer to save than spending or consumption. "By providing confidence about this vaccine, it will encourage people to increase consumption," said Agus. Increasing the level of public consumption is quite important because one of the magnets of Indonesia as an investment destination is its large market potential. "They entered to fulfill the integrity of the market," he concluded.

As is well known, the Government continues to strive to stimulate the national economy by encouraging investment realization, both from domestic (PMDN) and global (PMA) investors. The Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia is even ready to assist and facilitate investors or companies facing obstacles in realizing their investments. The realization of investment is expected to have a positive impact on job creation and economic growth. "We have only one determination, how can we push the inefficient to become efficient. Which stalled us running. Those who are not yet running, we will give permission” said Bahlil, last week.

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