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Indonesia Needs IDR 4,983.2 Trillion Investment to Pursue 6 Percent Growth
Selasa, 17 November 2020
Katakini.com - The Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia said, Indonesia needed an investment of IDR 4,983.2 Trillion to achieve economic growth of up to 6% in 2024.
To achieve this much investment, at least this year it must reach Rp. 817.2 trillion. Then in 2021, it will be Rp858.5 trillion and in 2022 it will be Rp968.4 trillion.
According to Bahlil, to achieve that much investment, the government, especially BKPM, provides various facilities for investors to invest in.
Some of the convenience facilities include cheap land or land prices, ease of road infrastructure, abundant electricity supply, simplified permits, and so on. He even guarantees to investors that Indonesia is a paradise for investors.
"This year we were given an investment target of Rp. 886 trillion by Bappenas, but because of the Covid-19 pandemic, we revised it to Rp. 817.2 trillion. So, as of last September, we have realized Rp. 611.6 trillion," said Bahlil.
The Governor of Bank Indonesia, Perry Warjiyo, is optimistic that Indonesia will soon emerge from the threat of a deeper recession and the economy will begin to grow normally in 2021. This is because, for two consecutive quarters, the Indonesian economy has grown positively even though it is still negative.
In the second quarter of 2020, the economy grew -5.32%, while in the third quarter it grew -3.49% and it is believed that in the fourth quarter it will also grow again positively.
With the positive economic growth trend, BI is confident that the economy will grow 5% in the future.
"We believe that Indonesia's economic improvement will continue. Economic growth will be positive in the fourth quarter of 2020 and increase to 5% in 2021. It will even continue to increase to 6% in the next 5 years," Perry said.
Perry said that the improving economy was triggered by increased public consumption, improved investment, and of course exports began to increase.
In addition, financial system stability will also be maintained and of course the improvement in the rupiah exchange rate against the US dollar.
"The inflation rate will also remain low and manageable, while the current account deficit will decrease and banking liquidity will remain healthy," said Perry.
