REPUBLIKA.CO.ID, JAKARTA -- Maritime Coordinating Minister Luhut Binsar Pandjaitan has offered investment opportunities in Indonesia to the United States during his visit to the country. He said, US has to invest in Indonesia because Indonesia has great economic potential based on its demographic composition.
"It contains a productive, large, young, and big population as well as a growing consuming middle-class community. The Indonesian economy has been stable over the last 10 years," Pandjaitan said in a press statement received here on Thursday.
The statement was conveyed during the Sovereign Wealth Fund Institute Annual Conference 2018 in Santa Monica, the US, on Wednesday (Feb 21).
The minister pointed out several important points such as a healthy investment climate, political stability, and stable economic growth.
He also explained the construction of infrastructures, such as seaports, toll roads, airports, mass rapid transit (MRT), light rail transit (LRT), and others.
Infrastructure construction has been a priority for the administration of President Joko Widodo and Vice President Jusuf Kalla, in an effort to improve economic competitiveness and build connectivity. Indonesia has a population of 254 million people, 300 ethnic groups speaking 740 languages, and 17,000 islands.
"Therefore, it is important to build connectivity. We have increased the budget for infrastructure from 2014-2018 by 160 percent, from Rp154 trillion to Rp409 trillion. We will reduce the fuel oil subsidy and apply wise monetary and fiscal management.
Through the application of healthy and sustainable fiscal policy, Indonesia can keep its debt ratio below 30 percent of Gross Domestic Product (GDP) and budget deficit below 3 percent.
"As a result, Indonesia has received good ratings from international rating agencies. Three major rating agencies have acknowledged investment grade status for Indonesia, namely S & P Global Ratings, Fitch Ratings, and Moody's," he remarked.
Furthermore, the Indonesian government is reforming various policies in the public sector, among others, by simplification of the licensing process, reduction of list of negative investment areas (DNI), and allocation of fiscal incentives.
"Indonesia is ranked 72 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings," he revealed.
Indonesia¿s ranks improved to 72 in 2017 from 91 in 2016. The Ease of Doing Business in Indonesia averaged 113.10 from 2008 until 2017, reaching an all-time high of 129 in 2008 and a record low of 72 in 2017.
In addition, the minister invited investors to invest in waste processing.
Indonesia has expressed its commitment to handle plastic waste by building Suwung final trash disposal site (TPA) and cleaning Citarum River.
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