The Indonesian government recently revealed the state investment realization target by 2023. Unmitigated, the targeted investment amount is Rp. 1,800 – Rp. 1900 Trillion!
This was confirmed by the Coordinating Minister for the Economy Airlangga Hartarto in a press conference regarding the Results of the Plenary Cabinet Session on Handling the Covid-19 Pandemic and the Government Work Plan (RKP) for 2023, Wednesday (16/2/2022).
The target is up 50 percent compared to this year’s target of around Rp. 1,200 trillion.
He said, “[The realization of] FDI investment [foreign investment] and PMDN [domestic investment [PMDN] in 2023 is pushed at the level of IDR 1,800 trillion to IDR 1,900 trillion.”.
Airlangga added, in achieving this target, increasing competitiveness and the Online Single Submission (OSS) system are important.
Furthermore, the government is targeting investment or determination of gross fixed capital (PMTB) in the component of gross domestic product (GDP) to reach 6 percent overall in 2023.
There are several sources of economic growth that are continuously driven by the government, one of which is the investment component, household consumption, and exports.
“In terms of economic growth, it was agreed and reported to the President in the range of 5.3 to 5.9 percent,” said Airlangga.
Then, how to increase investment? Airlangga replied the government continues to encourage banks to extend higher credit. This is because the potential for credit in the banking sector is still very high.
He added, “The current realization, which is slightly above 5 percent compared to 12 percent of third party funds, still has quite a high room.”
Therefore, the government encourages the Financial Services Authority (OJK) to continue the credit relaxation policy indefinitely, as well as regulations to relax banking reserve levels.
