President Jokowi Urges Regional Lawmakers to Support Investment
The Government expects 5.4 percent economic growth in 2018, higher than 5.07% economic growth last year thanks to international trust for the Indonesian economy, according to President Jokowi. The President also cites Indonesias rank in Ease of Doing Business (EoDB) index which has significantly improved – albeit still far from target – from 120th in 2014 to 72nd in 2017.
President Jokowi made the statement in his directive at the Government Working Meeting on Accelerating Regional Investment at JIExpo Kemayoran, Jakarta, Wednesday (28/3).
During the event, the President urged Speakers of Regional Legislative Council (DPRD), Regents and Mayors not to issue local regulations that hamper investment, adding that he expects fewer regional regulations with better quality.
President Jokowi also hopes Indonesia will enter the top 40 in EoDB index next year to create better perceptions of Indonesia from national and global business community, adding that Indonesia’s rank in the Global Competitive Index in 2017 is 36th, showing Indonesias relatively good competitiveness.
President Jokowi further said that the United Nations Conference on Trade and Development has placed Indonesia in a fourth place as the main investment destination in 2017 while the latest US News survey put the country in a second place with the best perceptions and trends for investment. Nevertheless, the President stressed that there should be no room for complacency and that perceptions and trends are volatile, depending on the gap between perception and reality.
According to President Jokowi, investment plays a strategic value for economic growth in regions, as capital inflows will significantly improve development in regencies and cities. The State Budget, The President further said, contributes only 20 percent to the total development, while 80 percent comes from the private sector. Thus, The President hopes that this positive momentum can boost investment from national and international investors. Investment, along with export, is a very significant factor in economic growth, President Jokowi concluded.
Also attending the event were Vice President Jusuf Kalla, Coordinating Minister for the Economy Darmin Nasution, Minister of Home Affairs Tjahjo Kumolo, Cabinet Secretary Pramono Anung, Presidential Chief of Staff Moeldoko, Minister of Communication and Informatics Rudiantara, Minister of Law and Human Rights Yasonna H. Laoly, and Chairman of Investment Coordinating Board (BKPM) Thomas Lembong.