The COVID-19 pandemic has caused global economic growth to decline, as well as the Indonesian economy. Despite facing many challenges in increasing economic growth, the investment ministry of Indonesia is committed to monitoring the investment in Indonesia.
The Indonesian Ministry of Investment/BKPM along with central and local governments work together to solve the investment problems in Indonesia. One of Ministry of Investment/BKPM way to solve this problem is creating a strategic project map of investment opportunities in Indonesia.
Why Invest in Indonesia?
Here are several reasons why investors should invest in Indonesia.
- The Economic Growth
Even though the global and Indonesian economic growth has been weakened by the Covid-19-pandemic, but the Indonesian economy in the second quarter of 2021 gained positive growth for the first time since the outbreak of the Covid-19 pandemic in early 2020, amounting to 7.07% (YoY).
This performance continued the improvement that had occurred until the first quarter of 2021 and was the highest growth since the fourth quarter of 2004 (7.16%, YoY). This growth has caused the value of real GDP in the second quarter to exceed the real GDP value in the fourth quarter of 2019, before the Covid-19 pandemic.
The other reason why investors should invest in Indonesia is the significantly increased demographic bonuses. The demographic bonus is a condition where the productive age is more than the non-productive population in Indonesia.
Based on the Statistic Indonesia (BPS) estimation, Indonesia will get the impact of the demographic bonus in 2020 – 2035. The productive population is predicted to be at the highest chart history during this period, which reaches up to 64 percent of the total number of Indonesian populations.
Strategic Project Map of Investment Opportunities in Indonesia
Recently, Minister of Investment has been creating a strategic project map of investment opportunities in Indonesia which enables investors to invest easier in Indonesia. The 2021 investment opportunity strategic project map is a structured investment design in the form of a pre-feasibility study which is analyzed from various aspects, infographics, and spatial-based project information.
The Purpose of Creating Strategic Project Map of Investment Opportunities
The preparation of this strategic project map of investment opportunities has several purposes that are certainly in siding with Indonesian citizens and investors, as follows:
- Equitable investment in all regions of Indonesia and not concentrated in one particular area. With the equal distribution of investment, economic growth in Indonesia will be evenly distributed and minimize inequality in economic growth between regions in Indonesia.
- It will help in making it easier for investors to invest in Indonesia. An informative and comprehensive study will assist investors in making decisions to invest in Indonesia. With this study, investors do not need to conduct a feasibility study, which generally costs 1-2 billion.
Several Great Investment Opportunities in Indonesia
- Investment Opportunities in Tourism Sector
The abundant natural wealth in Indonesia makes tourism one of the sectors that contribute the most to Indonesia’s GDP. Based on bps.go.id, the total number of foreign tourists that came to Indonesia was 16.106.954 people. And currently, the Indonesian government is preparing several tourist destinations in various regions in Indonesia to attract more tourists to come.
- Agriculture: The Large Food Demand in Indonesia
Agriculture is one of the essential sectors in Indonesia. Food availability is a critical thing along with the increase of population growth in Indonesia from year to year. The large food demand in Indonesia is what opens up great investment opportunities in Indonesia for both domestic and foreign investors.
- The Development of New Renewable energy
The Indonesian government has approved the Electricity Supply Business Plan (RUPTL) of PT PLN for the 2017-2016 period. In the next ten years, the total power plant is planned to be 77.9 GW, transmission 67,627 km, and Substation 165,231 MVA. Furthermore, the development of new renewable energy plants is planned in order to achieve an optimal primary energy mix by 2025 as long as it meets the economic level, in accordance with the National Energy Policy.
- Great Investment Opportunities in Digital Sectors
The development of the manufacturing sector using digital platforms is an important thing in this digital era. One of the signs is the rapid growth of application-based startup companies in Indonesia. This is one of the investment opportunities in Indonesia since the government welcome foreign investors in the digital industry sector such as e-commerce, web portals, and etc.
By creating a strategic project map of investment opportunities, it is hoped that it will make it easier for investors to invest in Indonesia, as well as increase and equal distribution of economic growth in various parts of Indonesia.