Indonesia is a great many things; one of them is an investment potential for businesses looking to expand their portfolio.
The global economy has been hit hard by the 2020 pandemic. The Indonesian economy had only contracted 2.07 percent year-on-year (YoY). What’s next? We believe there are hidden opportunities in every crisis. In 2021, Indonesia aims to carve a sustainable path toward economic recovery. Our strategy is to increase the exposure of the country’s investment opportunities to the world at large.
So we’re excited to announce our participation at the prestigious Hannover Messe 2021, the world’s most comprehensive manufacturing technology exhibition. The exhibition will take place on April 12-16th. However, due to the pandemic, the event would be packaged as a virtual exhibition.
This year, Indonesia is poised to play a more significant role at Hannover Messe 2021 as an official partner country. It is an essential momentum to spur national branding. We encourage increased manufacturing capability and digital infrastructure development in Indonesia. We will introduce the Making Indonesia 4.0 roadmap, which carries the tagline: Connect to Accelerate to the world.
Friendly investment procedures
We have already curated 156 exhibitors consisting of large-scale industrial companies; small-medium enterprises (SMEs) and startups; industrial estates; industrial associations; State-Owned Enterprises (SOEs); ministries and institutions.
Indonesia has made rapid progress in improving the ease-of-doing-business where investment schemes are concerned. The recently amended regulations that fall under the Omnibus Law command 79 sectoral laws to follow new policies to make multi-sectoral regulations more approachable.
The government has also drafted several lists, ie. Investment Priority List (DPI); Indonesia Investment Authority (INA); and Online Single Submission (OSS) to guarantee more accessible and more straightforward approaches to establish business entities in the country. Yes, we transformed the term “red tape” to “red carpet”.
Norms, Standards, Procedures and Criteria (NSPK) for business licensing through risk-based OSS for each sector will be the sole reference for the central government, local governments, and business people in charge of business licensing. In addition, we provide fiscal incentive services, such as tax holidays, tax allowances, super tax deduction, import duty exemption, and facilities for investors investing in Special Economic Zones (KEK).
A steady support
German investors are very important to Indonesia’s investment climate, for they invested in capital-intensive industries. Between 2015 and 2020, German investment realization ranked 16th with a total investment value of USD 1,092.7 million. Our goal at this year’s Hannover Messe is to attract enough attention
to merit an interest among German investors to begin exploring their investment options.
Hopefully, adding priority sectors as part of Making Indonesia 4.0 will help us achieve the vision of taking Indonesia forward by 2045 (Indonesia Maju). Those sectors are the pharmaceutical, medical, and textiles and also apparel industries.
We do understand that not one company in the world can avoid the impacts caused by the Covid-19 pandemic. However, we believe the key is to ensure enabling conditions among business stakeholders to continue their business activities in Indonesia.
Indonesia is a country of enormous economic potential. As the Chairman of the Indonesia Investment Coordinating Board, I would like to invite all of you, our distinguished investors, to participate in Indonesia’s growth.
Chairman of Indonesia Investment Coordinating Board