President Joko Widodo Establishes Indonesia’s First Investment Acceleration Task Force

   

Economic growth matters for everyone. It is the most powerful instrument a country can use to reduce poverty and to improve the quality of life. President Joko Widodo has worked hard to ensure that Indonesia continues to have economic growth.

One of the things that President Joko Widodo has done is to revise the ministerial regulations. The Indonesian government has revised about 16 ministerial regulations to accelerate investments in Indonesia. Although all regulations are revised, the government at first prioritised regulations related to the delegation of authority in special economic zones (KEK) to attract investors.

As of 2021, the Indonesian government is still actively looking for other ways to boost Indonesia’s economic growth. One of the things they have decided to do is to establish a task force to help precipitate investments in Indonesia.

Investment Acceleration Task Force

President Joko Widodo has released Presidential Decree Number 11 of 2021 on the Task Force for Investment Acceleration on 4 May 2021. This regulation is to establish the Investment Acceleration Task Force or also known as Satuan Tugas (Satgas) Percepatan Investasi. The Minister of Investment/Chairman of Indonesia Investment Coordinating Board Bahlil Lahadia, will be in charge to lead the task force.

Following up on the Presidential Decree, the Minister of Investment formed an Implementation Team for the Investment Acceleration Task Force, through the Decree of the Chairman of the Investment Acceleration Task Force No. 121 of 2021 dated June 15, 2021. The implementation team consists of several representatives from across ministries/agencies, the National Police, the Attorney General’s Office, all the Regional Police Chief, and Provincial Attorney Services.

To have a better understanding of the task force, here are the names of some of the team members that have been chosen. The Deputy Attorney General, Setia Untung Arimuladi, is appointed as Deputy Chairman I. The Deputy Chief of Police, Commissioner General Gatot Eddy Pramono, as Deputy Chairman II. Dini Purwono, who is also a Presidential Special Staff, has been appointed as the secretary of the task force.

Responsibilities and Authority of the Investment Acceleration Task Force

In solving problems and encouraging investment acceleration, the Investment Acceleration Task Force sets project priorities based on specified criteria, namely investment plans that encourage import substitution and/or export orientation and/or absorb a minimum workforce of 3,000 people.

All of the authorities given to the task force are oriented towards accelerating investment realization. More specifically, according to the fourth article of the Presidential Regulation No. 11/2021, the responsibilities of the Investment Acceleration Task Force are:

  • To ensure the realization of investment for every domestic and foreign investment business actor who is interested and/or who has obtained a business license;
  • To quickly resolve problems and obstacles (debottlenecking) for business sectors that are constrained by business licensing for investment;
  • To encourage business acceleration for sectors that have the characteristics of rapidly generating foreign exchange, generating employment, and developing regional/local economies;
  • To accelerate the implementation of cooperation between investors and micro, small and medium enterprises; and
  • To provide recommendations for administrative action for heads of ministries/institutions/authorities and provincial/district/municipal governments against officials/employees who hinder the implementation of investment or who can increase the cost of investing in Indonesia.

The authority of the task force as stated in the fifth article of the Presidential Regulation No. 11/2021 include:

    1. To stipulate decisions related to investment realization that must be immediately followed up by the ministry, agency/authority/regional government; and
    2. To coordinate anything related to investment realization with ministries/agencies/authorities/local governments

    The Investment Acceleration Task Force works together with the Investment Task Force Secretariat which is led by the head of the secretariat who is in the work unit at the Secretariat of the Ministry of Investment/BKPM. Aside from that, the task force is required to report the implementation of their responsibilities to the president at least once a month or at any time if necessary. It is also stated in the decree that all costs required for the implementation of the duties of the Investment Task Force, Secretariat of the Investment Task Force, and the Implementing Team are charged to the State Revenue and Expenditure Budget through the Ministry of Investment’s Budget/Investment Coordination Agency.