TEMPO.CO, Jakarta - Chief of the Indonesia Investment Coordinating Board (BKPM) Bahlil Lahadalia, stated that the Covid-19 pandemic will cause a systemic, massive, and structured damages to Indonesia's investment. As a result, investment realization for the second quarter of 2020 is predicted to decrease.
"We still unable to forecast, but [investment realization] will decrease. Whereas we need lots of investments to create jobs," Bahlil said in a written statement dated Thursday, May 14, 2020.
Some of the sectors that have become investment priorities are manufacturing and medical equipment. In relation to medical equipment, the BKPM has conducted a meeting with the Medical and Laboratory Equipment Company Association (GAKESLAB) and the Indonesian Private Hospital Association (ARSSI).
"In the next four to five months, we will focus on bringing specific investments in the field of health. Potential investors have started to appear," Bahlil said.
In facing the Covid-19 pandemic, the BKPM has developed a '3+1' strategy, which will be achieved by optimizing existing investment realization, completing stagnant investments, conducting investment promotion, and establish internal consolidation to prepare for post-pandemic conditions.
Bahlil said that BKPM will not only focus on tracking foreign investments, but also domestic investments. "We will visit [investors], then talk with them concerning company expansion and incentives that can be facilitated," Bahlil said,
According to first quarter investment data released by BKPM on March 2020, investment realization in Indonesia had reached IDR 210.7 trillion from the total target of IDR 886.1 trillion with foreign investment value amounting to IDR 98 trillion (46 percent) and domestic investment value amounting to ODR 112.7 trillion (53.5 percent).
"This is the first time where domestic investment is larger compared to foreign investment. BKPM will continue to push to maximize domestic investment, As for foreign investment, it cannot be denied that there will be a reschedule for foreign investment realization because of the Covid-19 pandemic," Bahlil concluded.