Government Adjusted Negative Investment List To Attract Foreign Investment

Government Adjusted Negative Investment List To Attract Foreign Investment

Tuesday, 10 Dec 2024

The Indonesian government continues to demonstrate its commitment to creating a more conducive investment climate by reforming investment policies. The Minister of Investment and Head of BKPM, Rosan Roeslani, stated that Indonesia has made significant changes to its negative investment list in order to attract more foreign investors.

"We have revised our negative investment list (DNI) since the end of 2021 to 2022. Out of more than 100 industries that were previously closed to foreign investment, only 6 industries remain restricted. Alongside this, we have simplified many policies, regulations, and other related matters," Rosan remarked during the Indonesia Euro Investment Summit 2024 on Monday, December 9.

Rosan indicated that the reduction of the negative investment list serves as evidence of the government's seriousness in opening Indonesia's economy to the international community. He noted that this reform is also part of a broader strategy aimed at achieving an economic growth target of 8 percent. "Investment will play a crucial role in reaching this 8 percent economic growth target, in addition to domestic consumption," he emphasized.

In his presentation, Rosan highlighted the significant role of investment in Indonesia's economic structure. Currently, investment contributes approximately 24 to 25 percent to national economic growth, following domestic consumption, which accounts for 53 to 54 percent.

The investment target for the year 2024 is approximately 100 billion USD, with expectations for this figure to continue rising until 2030. This goal includes the creation of job opportunities over the next five years, as stated by Rosan.

Furthermore, Rosan emphasized that downstream processing is a crucial component of Indonesia's investment strategy. Downstream processing not only generates added value but also opens up broader industrialization opportunities.

"We are open to further discussions on this matter. The mapping process encompasses not only commodities but also provinces and cities with significant potential. We are also identifying countries and companies that possess the technology to support this downstream initiative," he concluded. (ferry@insightinnews.com)

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