Minister of Investment and Downstream/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani says investment is an important factor to achieve the 8-percent economic growth target that government is focusing to increase qualified investment flows as one of the main priorities in the future economic plan.
“To achieve target of 8 percent growth, it is clear that the structure of Indonesia economic growth is encouraged by several main factors. They ate domestic consumption which contributes between 53-54 percent to economic growth, investment at around 24-25 percent, government spending at around 8-9 percent, and export minus import at 2 percent,” Rosan said in his speech at 12th U.S.-Indonesia Investment Summit in Jakarta on Tuesday, November 26, 2024,
He added that Indonesia is more open for foreign investment, citing the establishment of the Omnibus Law that has revised foreign negative investment list.
“The impact of the policy can be seen from revisions of the list. There were more than 100 sectors that are closed to foreign investment. Currently, there are only 5 sectors that cannot be entered by foreign investment,” he said.
On the same occasion, Chairman of the Indonesian Economic Council and Special Adviser of the President for Digitization and Government Technological Affairs Luhut Binsar Pandjaitan said that despite facing global challenges, the Indonesian economy grew at 5.2 percent last year.
“This is an evidence of the country’s strong economic foundation. We have set economic growth target of 6 percent in 2024 and are optimistic that we can continue to increase this growth,” Luhut said.
He cited the government’s determination to continuously work hard in an effort to increase the country’s economic competitiveness with the focus on reforms and efficiency in all ministries and institutions.
“We believe Indonesia can continue to grow and develop. The economy stays solid and despite global uncertainty, we still have room to grow. With low debt to gross domestic product and budget deficit at 2.5 percent to 3 percent, we have enough space for the economy to grow,” Luhut said.
The Summit continued with a meeting between Chairman of the Economic Council, the Minister of Investment and representatives from 22 U.S. leading companies − Bank of America, Chevron, ExxonMobil, Cargill, Caterpillar, Chubb, Google, IBM, Meta, Qualcomm, Pfizer, Kraft Heinz, UL Solutions, EY, GE Healthcare, Honeywell, UOB, Johnson & Johnson, Abbott, SEG Solar, Mastercard, and HSBC.
