The Indonesian Chamber of
Commerce and Industry (KADIN) requested the business community not to delay
investment in 2014. Despite entering the political year, many opportunities
were open and entrepreneurs should take advantaged of these opportunities. Economic
stability in the year of general election will remain intact. Because the
Indonesian people were already mature in following the festival of democracy as
has been done in the 2004 and 2009 general elections. Although the risk of
global economic turmoil still exists, the policy that the has been issued by
the government is expected to address this risk.
Therefore, KADIN asked local and foreign investors to not
be afraid to face business and political conditions which is feared to trigger
instability this year. Chairman of KADIN, Suryo Bambang Sulisto, in Jakarta
(Friday, February 7), hoped that in the political year there would be no
significant interference that could hamper the achievement of government
targets of manufacturing growth at 6.4% - 6.8%, labor absorption at 400,000
people, industry product export at USD 14 billion, and domestic investment at
Rp50 trillion can be achieved.
According to Suryo, every political year, must
entrepreneurs take a wait and see attitude. This is because they feared that
their businesses will be threatened, so they then to guess what policies will
be taken by the next administration. He believed that Indonesia still benefits
from having high attractiveness as an investment destination in comparison with
other countries in ASEAN. Therefore, Indonesia should be able to use it. The
businesses are expected to take advantage of this situation by realizing
expansion and investment plans. “Do not be afraid to open a business, the
political year is a stable year for investment,” he said.
Data of the Investment Coordinating Board (BKPM) stated
that investment growth in Indonesia is increasing every year. In 2004,
investment value of Rp56.63 trillion consists of Domestic Investment (PMDN)
Rp30.66 trillion and Foreign Investment (PMA) USD 9 billion. In 2013,
investment is targeted at Rp390 trillion. BKPM released realization of
investment project in 2013 at Rp398.6 trillion consisting of Domestic
investment at Rp128.2 billion and Foreign Investment at Rp270.4 trillion. The
mining sector is still a magnet for investors followed by motor vehicles and
transportation equipment. While investors who enter Indonesia are dominated by
Japan, Singapore, South Korea, and the United Kingdom.
Meanwhile, Chairman of the Indonesian Young Entrepreneurs
Association (HIPMI), Raja Sapta Oktohari, hoped that security and stability
ahead of 2014 general election is maintained. Therefore, if social &
political stability and security are disturbed, it can be a major challenge in
the face of the ASEAN Economic Community (AEC) by 2015.
Socio-political dynamics recently tend to be dynamic,
especially before the 2014 general election. AEC is one of the free trade that
needs to be addressed with readiness of all elements of the nation. “This is so
that Indonesia’s commitment to the AEC does not become a boomerang for
ourselves,” Okto said.
It is important for Indonesia to prepare itself to face
the AEC because it concerns the dignity
of the nation. In turn, it also will be associated with the survival of the
nation. AEC is indirectly an arena of trade competition among ASEAN countries.
HIPMI reminded that currently Indonesia’s economic scale has been ranked the 16th
economy in the world. Indonesia accounted for more than 40% of GDP with a
population of nearly half of the population of ASEAN. (E)
Business News - February 12, 2014
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