Economist: Voting for Potential Investors Needs to be Balanced by Improvements in the Investment Climate

Published 15 September 2022 | 02:57 am

TRIBUNNEWS.COM, JAKARTA - Researcher from the Institute for Development of Economics and Finance (Indef) Ahmad Heri Firdaus said that investment promotion efforts should be carried out by the government.

According to him, efforts to attract investment need to be pursued for the sake of economic growth.

"So what is being done is an effort to pick up the ball to attract investors, but don't forget how to improve the investment climate in the country," Heri told reporters on Monday (12/9/2022).

Heri warned that investors who enter Indonesia have a friendly investment climate.

"If we invite them to come to Indonesia, it turns out that as soon as potential investors see that the investment climate is not friendly, it's a shame. Later, he doesn't. We think we are php (a giver of false hope)," he said.

He said that every potential investor would conduct a study before deciding to invest. They will compare one country with another, then choose a country that is more supportive of their investment.

Therefore, the investment climate must be mitigated and monitored by the government, so that the image of Indonesia's investment does not deteriorate in the eyes of investors.

"There are efforts to improve the climate as a whole in various aspects, both in terms of licensing and also other facilitation. Because they, potential investors, compare with other countries. Don't let investors compare, we only get bad things," he said.

Heri added that the inflow of investment will also make Indonesia experience a trade surplus. This is possible when the incoming investment is in the downstream industry.

So that Indonesian export goods are not in the form of raw goods, but finished or semi-finished goods that have a higher selling value.

"So far, our trade surplus has been supported by commodities. For example, if we want to switch exports to high-value-added goods, which are more downstream. That is relevant to our efforts to invite investors," he concluded. Previously, Coordinating Minister for the Economy Airlangga Hartarto approached with India, Japan and New Zealand, on the sidelines of the IPEF (Indo-Pacific Economic Framework) Ministerial Meeting in Los Angeles, USA.

The meeting was held separately and discussed various agendas, including to spur economic cooperation between the two countries.

During the meeting, he also promoted the Indonesian economy which has the opportunity to grow 4.5-5.3 percent in 2022, the trend of increasing consumption, the rate of investment flow that continues to rise into Indonesia to the trade balance surplus that continues.

Source: SOURCE