Finance Minister: Investment Crucial so that Indonesias Economy Grows on Target
Date 12 Februari 2018
Investment is of particular importance so that Indonesian economy can grow on target with the composition of economic growth more evenly, which is not dominated by one growth machine, such as consumption.
This was enunciated by the Minister of Finance Sri Mulyani when answering reporters’ questions after attending a Plenary Cabinet Meeting at the State Palace, Jakarta, Monday (12/2) afternoon.
Furthermore, the Minister said that when it comes to investment, there are several things to be borne in mind. First, the simplification of regulations and policies. “We will reduce various rules that get in the way and then create a shorter and easier process. We will impose a single submission and coordination with the local governments becomes very important,” the Minister explained.
Second, according to the Minister, using incentives such as the State Budget more actively. She added that in this case, the Ministry of Industry will see from the composition of potential industries.”We have reviewed the tax allowance and tax holiday. Based on such review, we found the factors that become the obstacles such as the number of labors that must be absorbed and the minimum investment value as well,” the Minister said.
The Minister went on to explain that the review is pragmatically seen to the industry that is already willing to grow, as if the entrepreneurs are old players. She added that also included in the requirement is the company must have a new body, so the company must be new.
“Well, we will see if the company is the one that is already going to expand and the expansion will have a significant value, then it can be considered to receive incentive,” the Minister added.
From the side of allowance scheme, the Minister continued, we also optimize the prevailing laws and regulations by giving one compensation so that the incentives for the entrepreneur to invest emerge, the risk becomes smaller, but the return is higher, and the incentive becomes bigger again. “That’s what we are doing now and hopefully we can finish next month,” the Minister concluded. (FID/RAH/EN) (MUR/MMB/YM/Naster).