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Minister claims 80% of unfinished investment projects worth Rp708 trillion are now complete

Tempo - March 16, 2023

Antara, Jakarta – Investment Minister and Investment Coordinating Board (BKPM) head Bahlil Lahadalia has stated that his party has completed 80 percent of unfinished investment projects worth Rp708 trillion (around US$45.7 billion) since his taking over as BKPM head in 2019.

"Of the Rp708 trillion (around US$45.7 billion) in unfinished investments, we have completed more than 80 percent, including investments outside Java Island," he informed at the "2023 Fortune Indonesia Summit" in Jakarta on Wednesday.

The completion of unfinished investments was one of the directives the minister received from President Joko Widodo when he took over as BKPM head. He was also tasked with resolving overlapping investment regulations and ensuring equal investment distribution outside Java.

One of the unfinished investment projects that the minister helped resolve involved the stalling of Lotte Chemical's investment of around Rp60 trillion since 2016 over land ownership issues.

"We formed a task force consisting of the police and the prosecutor's office, and we were able to finish the stalled investment. The realization of the nearly US$4 billion investment has now reached 38 percent," he informed.

According to Lahadalia, the government is also pushing for investment realization outside Java Island and ensuring that investment in each region is undertaken in collaboration with local business actors as well as micro, small, and medium enterprises (MSMEs).

"Once we give the permits and investment to entrepreneurs, they are obliged to work with entrepreneurs and MSMEs in the region. If this is not mandatory, they will not share their income with local MSMEs," he said.

The minister said he is optimistic that the value of investment flowing into Indonesia would continue to grow because investors consider Indonesia's economy as more stable compared to other countries due to supporting regulations and incentives, for example, the Job Creation Law, which accommodates business licenses and investments.

"Under the Job Creation Law, licensing is being done through Online Single Submission (OSS), which is cheaper for business owners to invest," he added.

Source: https://en.tempo.co/read/1703220/minister-claims-80-of-unfinished-investment-projects-worth-rp708-trillion-are-now-complet