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