Indonesian Minister Denies Sea Sand Export Policy Linked to Singaporean Investment
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14 June 2023 21:07 WIB
TEMPO.CO, Jakarta - Coordinating Minister for Economy Airlangga Hartarto on Wednesday responded to rumors scorning the government’s sea sand export policy that is associated with a public discourse alleging it to be motivated by the government’s effort to attract Singapore into the new capital city project.
When asked about this specific rumor, Minister Airlangga on June 14 strongly stated, “They are unrelated.”
However, he did not deny that Singapore is one of the many destination countries for Indonesia’s sea sand exports under the new Government Decree (PP) No.26/2023 overseeing sea sediment management.
Airlangga said he still needs to calculate the economic potential behind the issuance of the policy, especially after the government proclaimed that it can boost non-tax state income (PNBP).
President Joko “Jokowi” Widodo on the same day denied this allegation. “They are totally unrelated,” said the President at the Development Finance Comptroller (BPKP) headquarters in East Jakarta.
The President defended that the sea sand export policy exclusively oversees sea sand that is sourced from sediments, which he claimed has hampered commercial shipping routes and the sustainability of coral reefs. Jokowi assessed that efforts to clean up sea sediments are crucially needed and that this decree had been concocted for a number of years.
The suspicion of the government attempting to lure Singapore into investing in the New Capital City (IKN) project is reflected in the Indonesian government’s keen targeting of Singapore. According to official reports, 95 Singaporean investors from 69 companies also visited IKN up until May.
To encourage investment acceleration in IKN, the Ministry of Investment/Investment Coordinating Board (BKPM) also stated that it would guarantee that these investors would be accommodated. Deputy Investment Climate Development Yuliot said the government would provide the best service to investors through regulatory reform, accelerating the licensing process, formulating incentives, and end-to-end services for investors.
Jokowi has also prepared 300 investment packages for the private sector with a total value of US$2.6 billion. "I used to be a businessman. Don't worry, we will prepare fiscal incentives in the form of tax holidays, non-collected value-added taxes, and super deduction taxes. We have everything," said the President.
RIANI SANUSI PUTRI
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