The transformation of the Investment Coordinating Board (BKPM) into the Ministry of Investment is expected not only to change the nomenclature of the institution, but to expand its functions and powers. This is necessary so that the main objective of this ministry to be established, namely to attract investment, can be carried out properly.
Chairman of Commission VI DPR Faisol Riza said, the transformation of BKPM into the Ministry of Investment was indeed a follow-up to the government in order to fix the national investment climate. Therefore, the function and authority will regulate.
"BKPM has not met the sufficient requirements to become a K / L that can consolidate to hold even greater authority, so the formation of the Ministry of Investment is encouraged," said Faisol in his statement, Tuesday (20/4).
The establishment of the Ministry of Investment, according to him, is also a follow-up to the Law on Cipta Beleid, a derivative of the Ciptaker Law, namely Presidential Decree 10/2021 concerning the Investment Business Sector, which states that the function and authority of investment lies with a Ministry-level institution.
Faisol ensures that the increased functions and powers are related to coordination and policies, especially those related to ease of licensing. The Ministry of Investment will be the consolidator of all investment licensing processes that previously existed in other regions and ministries.
"Especially the coordinative function that has been weak at BKPM. If you become the Ministry of Investment, it will be equal to other Ministries. Many business and investment licenses are now being withdrawn from the central government, ”said Faisol.
Faisol also guaranteed that this additional function and authority would not overlap with other ministries or agencies.
UGM economist Sri Adiningsih agrees that the function and authority of the Ministry of Investment is strengthened. Not only related to coordination between the center and the regions, but also between ministries. The existence of the Ministry of Investment is expected to overcome this obstacle.
In order for the investment climate to be better, investors actually need to be given a special fiscal policy for investment. However, according to Sri, even though it does not have fiscal authority, the Ministry of Investment can still play a role in the fiscal realm, especially in relation to specific investor needs. The Ministry of Investment can act as an intermediary to meet the needs of investors and existing regulations in Indonesia
"The Ministry of Investment is expected to be able to solve investment obstacles. What is needed by the prospective investor can be facilitated by the Ministry of Investment, starting from stimulus, ease of licensing and others that have been obstacles, "said Sri Adiningsih.
According to Sri, accommodating investors' needs is very necessary for the Ministry of Investment. This is to ensure that the funds that have been invested can last until implementation, even until investors meet their investment targets in the country.
The matter of stimulus, both fiscal and non-fiscal, has actually also been regulated in Presidential Decree 10/2021 concerning the Investment Business Sector. In the regulation, both priority and pioneer business sectors are entitled to various incentives, including investment allowances to free import duties for the import of machinery and equipment for factory construction in Indonesia.
Therefore, in the midst of a pandemic situation, the government should do everything possible to restore the national economy, including through the realization of investments that can boost growth.
Therefore, the Ministry of Investment is expected to accelerate this realization to all investors, both pioneer industries and others, who have shown their commitment
