Jokowi Secures Rp271tn Worth of Investments from European Visit

TEMPO.CO, Jakarta-President Joko “Jokowi” Widodo`s visit to European countries have resulted in positive outcomes. The government has secured investment commitments of US$20.5 billion (Rp271 trillion) from Germany, the UK, the Netherlands and Belgium.

Franky Sibarani, the Investment Coordinating Board (BKPM) Chairman, said that Jokowi’s presence has improved the confidence among prospective investors. He also considered that Jokowi’s visit as quite significant, considering that investment realizations of European Union countries have not been great. For instance, UK investment realization has fallen 84.6 percent to US$54 million. Belgian investment realization has also dropped 53.7 percent to US$1.63 million. “The Netherlands and Germany are the only two with increased [investment realizations],” Franky said yesterday at his office.

In Germany, the government secured investment commitments of US$875 million. One of which is cooperation in building smelting plants between PT Aneka Tambang and Forrestaal and Cronimet, according to Franky. The government also has brought in investment commitment of US$19.02 billion and US$606 from the Netherlands. British investments were mostly secured from energy companies, such as NV Voght UK Ltd who are set to build solar power plants (PLTS) worth US$200 million and Biritsh Petroleum who are about to expand Tangguh gas project worth US$8 billion.

Aside from investments, the government has also secured the license agreement on tropical timber production or Forest Law Enforcement, Governance, and Trade (FLEGT). On April 21, Jokowi together with European Commission President Jean-Claude Juncker and European Council President Donald Tusk have agreed to promote the trade of legally produced timber. The deal was based on the assessment that Indonesia is fully ready to implement the Indonesia-EU Voluntary Partnership Agreement (VPA).

European Commissioner for Environment, Maritime Affairs and Fisheries, Karmenu Vella, said that Indonesia has shown that trade could provide incentives by ending the scourge of illegal logging. The FLEGT scheme will enhance forest governance through improved transparency, accountability and encourage legal trade. At present, over 90 percent of Indonesia's timber exports are from independently audited factories and forests.

Jokowi has also appreciated the trust given by European businessmen to Indonesia. Deregulation package issued by the government has been responded positively by European businessmen, according to him.

ADITYA BUDIMAN | ANGELINA ANJAR SAWITRI | ANANDA TERESIA