Francisca Christy Rosana, Jakarta – The Institute for Development of Economics and Finance (Indef) said that President Joko Widodo's (Jokowi) decision to form a ministry that specifically handles digital investment could lead to dualism in the investment sector.
Indef argues that Indonesia already has an Investment Coordinating Board, or BKPM, in charge of dealing with domestic and foreign investments.
Indef deputy director Eko Listiyanto said that the tasks and functions of a ministry must be set clearly. "If is unclear, I'm afraid there will be dualism and it might not be effective," Eko said on Thursday, August 15.
Eko said that an investment ministry would only "collide" with the BPKM if both institutions are doing similar tasks. BKPM, he argued, can handle the optimization of digital investments.
The existence of an investment ministry, he added, also contradicts the government's efforts to reinforce an online single submission.
Eko also said the government actually has a plan to upgrade BKPM's status into a ministry. "If it is turned into a ministry, the BKPM can have stronger bargaining power and position when regulating investors," Eko said.