Ahead of the end of President Joko Widodo ‘s term in office, Indonesia booked significant investment realization of Rp 428.4 trillion (US$26.3 billion) in April-June 2024, a 6.7 percent increase from the January-March 2024 figure and a 22.5 percent increase in comparison with the same period of 2023.
In total, investment realization from January to June (First Semester ) of 2024 was recorded at Rp 829.9 trillion (US$ 51 billion), an increase of 22.3 percent in comparison with the same periode last year. The first semester achievement is 50.3 percent from the total target of 2024.
Meanwhile, this investment has created jobs for 677,623 people in the second quarter of 2024 and 1,225.042 people during the first semester of 2024.
Minister of Investment/Head of Investment Coordinating (BKPM) Board Bahlil Lahadalia said investment climate remains conducive despite the fact that Indonesia is in transition period ahead of the inauguration of new president. He said small and medium enterprises contributed to huge proportions of jobs in comparison with other business sectors.
“From January to June 2024, there were 2.4 projects of small and medium enterprises with total investment of Rp 127 trillion or US$ 7.8 billion. They created jobs for 4,696,618 people,” Bahlil said on Monday, July 29, 2024.
In view of the jobs created by small and medium enterprises, Bahlil highlighted lower portion of financial and capital support for small and medium enterprises. Small and medium enterprise only secured no more than 18 percent of credit lending of Rp6,300 trillion (US$386 billion).
“I think it is sometimes unfair for the small and medium enterprises, mainly in terms of capital support. Meanwhile, they have huge contribution in creating jobs, 4 million jobs,” Bahlil said.
He cited that a team in the Investment Ministry/BKPM has been encouraging financing for small and medium enterprises, one of which is through Investment Minister/BKPM Head Regulation No. 1/2022 on Procedures for Implementing Partnerships in the Field of Investment between Large Enterprises and MSMEs in Regions.
Bahlil is optimistic that the regulation is the right way to encourage small and medium enterprises to upgrade and create more jobs.
Similarly, Vice President-elect Gibran Rakabuming Raka advised that MSMEs be given attention and ease of doing business.
“Besides downstream industry development, I also have also called for support for small and medium enterprises since the 2024 presidential election debate,” Gibran said during a visit to the Ministry of Investment/BKPM on Monday morning.
