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Investment to Drive Indonesia`s Economic Growth in 2017

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Editor

27 October 2016 15:14 WIB

TEMPO.CO, Jakarta - Improved investment climate in Indonesia has been apparent this year and is expected to continue next year. The second quarter of 2016 saw the number of direct investors and foreign direct investment grew by 14.8 percent and 12.3 percent, respectively.

“The government is therefore committed to making investment as the new driving force of economic growth,” said Isa Rachmatarwata, Finance Ministry’s Expert Staff on Financial Service and Capital Market Policy and Regulation, at Shangri-La Hotel Jakarta on Thursday, October 27, 2016.

He said that Indonesia’s economy still relies on household consumption. Therefore, he expects investment to contribute more.

The government will push for investment in high value-added industries such as infrastructure and manufacture, particularly those of natural resources-based. “We will also provide fiscal support, such as tax holiday, tax allowance, government borne import duties and other incentives,” Isa said.

Moreover, he said the government is committed to issuing more economic policy packages in a bid to boost investment climate and encourage the acceleration of infrastructure development.

According to Isa, a collaboration between stakeholders will be needed to achieve expected economic growth at around 5.1 percent next year. “An integrated framework will be needed in the fiscal sector, real sector, and the monetary sector.”

Isa said that fiscal policies and proper implementation of the state budget (APBN) will fuel economic growth. “And in order to be growth friendly, the government will continue to provide certainty for the public,” he said.

GHOIDA RAHMAH



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