Investment in Indonesia is still hampered by classic issues such as bureaucracy, President Joko Widodo or Jokowi admits he wants to be angry and appears annoyed in a video uploaded by the presidential secretariat to Youtube on Saturday (20 / 11).
He said many parties were lining up to invest in Indonesia, especially state-owned enterprises (BUMNs) such as Pertamina and the State Electricity Company aka PLN. This was forwarded by the President in his leadership to the Pertamina and PLN Commissioners and Directors, at the Presidential Palace in Bogor, West Java, Tuesday (11/16) and uploaded to the Presidential Secretariat’s Youtube channel, Saturday (11/20 ).
“The complexity lies in our bureaucracy and our own state-owned enterprises. Sometimes I want to get mad at something that I know is easy, but hard to do, how to come don’t go for a walk, ”the president said.
Along with the rapid changes, Jokowi also urged state-owned companies not to wait for agreed investment plans. The opportunity to invest in Pertamina and PLN is very wide open, if these officials are open and open the door wide. This openness is also what the President expects from the law on job creation.
Jokowi gave an example, Pertamina, for years the Russian oil company Rosneft wanted to invest in Tuban. The investment is estimated to be worth around 168 trillion rupees, but according to Jokowi, the realization is only 58 trillion rupees.
“But they want it fast, we don’t want it fast,” Jokowi said.
He therefore asked Pertamina and PLN to calculate the consequences of each mission entrusted, and to be carried out in a professional manner. Moreover, as BUMN, it performs calculations in a transparent and open way, with calculations and logical calculations.
“That’s later, if you want a securitization, you will find out that the price is expensive or the price is difficult to securitize,” he said.
In addition, the President stressed that he did not want the mission to be carried out without verification and control. “Because the mission thinks no checked, controlled. This is later if you want the securitization to be discovered. Because of what, it’s just because there is an assignment to keep riding, that’s what should be avoided. Yes Pride Yes, I will take action, ”said the president.
He stressed that PLN and Pertamina must maintain the governance of each mission. They insist that state-owned enterprises no longer “roll” or hide in the name of the assignment. This will have an impact on ineffective governance and supply not true.
“It is the weakness of public enterprises, if there is a mission, it becomes unprofessional, it is there. The weak point is there so that professionalism is lost,” said the president.
Meanwhile, data from the World Economic Forum (WEF) in the Global Competitiveness Report 2017-2018 shows that corruption is the main obstacle to doing business in Indonesia with a score of 13.8. This results in high costs for doing business in Indonesia due to corrupt practices.
Additionally, the factors that hinder doing business in Indonesia are inefficient government bureaucracy with a score of 11.2, access to finance with a score of 9.2, and inadequate infrastructure with a score of 8.8. . The fifth inhibiting factor is the unstable government policy with a score of 8.6.
On the other hand, the Central Statistics Agency (BPS) recorded the investment component in gross domestic product (GDP) at current prices (ADHB) of 1,247.04 trillion rupees in the second quarter of 2021. This means that the The investment contributes 29.86% of the total national GDP of IDR 4,175.84 billion.
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