BKPM Head: E-Commerce, Tourism Most Strategic Sectors to Pursue Investment Quality

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 5 Januari 2018
Category: News
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Head of BKPM Thomas Lembong answers reporters' questions after a Limited Meeting at the Presidential Palace, Jakarta, Friday (5/1) afternoon. (Photo: PR/Deni)

Head of BKPM Thomas Lembong answers reporters’ questions after a Limited Meeting at the Presidential Palace, Jakarta, Friday (5/1) afternoon. (Photo: PR/Deni)

The Indonesia Investment Coordinating Board (BKPM) will emphasize the quality in attracting investment throughout 2018 following the direction of President Joko “Jokowi” Widodo. Not only the quantity but also the quality of investment, which can make our workers go to classes to jobs that add greater value and provide higher income.

In this regard, Head of BKPM Thomas Lembong said that two sectors which are the most strategic are, first, tourism, because the results are real. He added that the impacts such as rapid employment, income to foreign exchange, and the services sector also increased as all tourism services were conducted by humans, thus generating employment.

Second is e-commerce. Based on the BKPM calculation, in 2017 total investment to commerce sector is more than USD5 billion. “This means half of the total investment in the oil and gas sector in 2016. So the value is huge, the growth is very high. My calculations are roughly 50-80 percent year on year. So, this is something we have to support,” Thomas told reporters after a Limited Meeting at the Presidential Palace, Jakarta, Friday (5/1) afternoon.

According to Thomas, e-commerce target is quite diverse this year. He mentioned that many are from China, such as Alibaba, and also Tencent which is reportedly eager to invest in Go-Jek. In addition, quite a lot of the US Silicon Valley ventures. “BKPM is also working to get more entry from Europe and Japan,” Thomas added.

Regarding the sluggish growth in investment as President Jokowi delivered during the limited meeting on Friday (5/1) afternoon, Head of BKPM Thomas Lembong said the challenge is the implementation.

He pointed to an example, the Ease of Doing Business (EoDB) index, this year Indonesia is targeted to enter Top 40. According to Thomas, the EoDB from the World Bank consists of 10 components, ranging from access to electrical connections, the time it takes to have construction permit, and resolve disputes in court.

Therefore, Thomas continued, the system in court must be improved, the system in the State-owned Electricity Company (PLN) must be repaired, and the service system that issues the construction permit must be repaired. “Systems should be made online, documents must be digital. There is no other way. These are all the implementations,” Thomas said.

Thomas said, as quoting the President and Vice President’s statements, it takes a change of paradigm, mindset, and mental. The change from a ruler’s mentality to a servant’s mentality.

“This is the bureaucratic issue we encounter. Earlier, the President even used the term, “We are very feudal indeed”. We sit gallantly and majestically, thinking of ourselves as important, waiting for investors to come to us as if they need us. Yet, on the contrary, it is we who need them,” said Thomas adding that the President and Vice President also appealed that the Ministers begin to disseminate changes in attitude, orientation, from a ruler to a servant. (DND/DNS/ES) (MUR/YM/Naster).

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