Remarks of President of the Republic of Indonesia at the 2021 Investor Daily Summit, 13 July 2021, from the Merdeka Palace, Jakarta
Assalamu’alaikum warahmatullahi wabarakatuh,
May prosperity be upon us all,
Greetings of virtue.
Distinguished Ministers of Indonesia Onward Cabinet;
Distinguished Chief Operating Officer of Berita Satu Media Holdings, Mr. Anthony Wonsono;
Distinguished Editor In Chief at Investor Daily, Mr. Primus Dorimulu;
Distinguished regional heads;
Distinguished Chairperson of the Indonesian Chamber of Commerce and Industry (Kadin), Mr. Arsjad Rasjid;
Honorable Heads of State-Owned Entreprises and Private Companies,
Honorable Entrepreneurs and Investors;
Ladies and Gentlemen, Esteemed Guests.
In the fight against the ongoing COVID-19 pandemic, the Government has been taking necessary measures since the beginning, handling the health side through the vaccination drive and the social protection to ease the burden of the affected people, especially those underprivileged people, as well as issuing national economic recovery program (PEN).
In addition, the Government also ensures that the process of reforms and transformation of economic structure will continue to carry on. The pandemic should not hamper the reforms. We must seize the momentum to speed up the structural reform instead. We have done that, one of which is through the issuance of Job Creation Law and its derivative regulations.
Our economic structure, which has been contributed by more than 55 percent of public consumption, must be slowly shifted to be more productive by encouraging industrialization, downstreaming, investment, and increasing exports. Particularly, amid the ongoing pandemic, investment is the main key in the recovery and acceleration of economic growth.
Ladies and gentlemen,
The Government has made various efforts to push for investment. The Job Creation Law aimed at improving the investment ecosystem and business activities in Indonesia, as well as providing protection for cooperatives and MSMEs and the national industries.
Simplifying business licensing process at central and regional levels, implementing risk-based business licensing, and various incentives are expected to increase investor interest, especially in the country. As of July 2021, the Online Single Submission (OSS) Risk-Based System must be used to be the sole reference for all stakeholders in the context of administering business licensing electronically, swiftly, and efficiently. Various facilities for MSMEs are also expected to grow local MSMEs so that they can collaborate with large companies to create equity, economic independence, and realize inclusive and sustainable economic growth.
The Government has also formed an Investment Acceleration Task Force through Presidential Decree Number 11 of 2021, which is assigned to solve any issues faced by business actors, as well as encourage cooperation between large investors and MSMEs.
I’d like to underscore that we should not see investment from large investors only, the large ones. The Government also provides equal access to MSMEs and cooperatives. MSME-based investors and cooperatives have the same noble hearts as large investors/foreign investors for providing job opportunities to the Indonesian people, have the same role in pushing forward the nation’s economy.
Ladies and gentlemen,
The Job Creation Law also mandates industrial downstreaming. The economic transformation through industrial downstreaming is essential to increase added value, reduce imports, increase exports, and create more job opportunities to encourage economic growth towards Advanced Indonesia. Those who have been enjoying the benefits of importing products from abroad must also turn into producers who go downstream and take on a role in strengthening the domestic industry.
From January to May 2021, the manufacturing sector has shown good performance during the pandemic. The exports of processing industry products were recorded at US$66.70 billion, 30.53 percent higher than those on the same period in 2020. The processing industry also provided highest contribution, namely 79.42 percent of the total exports worth US$83.99 billion in January to May 2021.
We must strive to improve Indonesia’s role in the global supply chain. The potential of our digital economy is also extraordinary. During 2020, the value of Indonesia’s digital trade transactions reached Rp253 trillion, this value is expected to increase by Rp330.7 trillion in 2021. The value of Indonesia’s digital economy is predicted to be the largest in Southeast Asia in the next ten years.
Ladies and gentlemen,
We have to find and develop those potentials that have not been exploited optimally. 2021 will be our momentum to rise. Let’s carry on building optimism and hope so that we will be able to transform into a new economic power that is stronger, resilient, and independent.
Lastly, on this auspicious occasion, I’d also like to wish a happy 20th birthday to Investor Daily, I hope Investor Daily will be more successful and will continually inspire Indonesia’s progress.
I think that conludes my remarks. Thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh,
Om Santi Santi Santi Om,
Namo Buddhaya. (SA/LW)