Jakarta. Indonesia has targeted to attract Rp 1,650 trillion (about $106 billion) in combined foreign and domestic investment next year in hopes of spurring economic growth.

However, this is no easy feat. Aside from today’s uncertain global condition, Indonesia is not the only country that is looking for investors, according to President Joko “Jokowi” Widodo.

“We are aiming to achieve economic growth between 5.1 percent and 5.7 percent next year. To do so, we must generate Rp 1,650 trillion in investment,” Jokowi said in Jakarta on Thursday.

“[Achieving that investment target] is not an easy feat especially considering today’s global conditions. … Our economic growth heavily relies on investment realization. And we have to compete with other countries,” Jokowi said in Jakarta on Thursday.

Jokowi compared Indonesia’s IMD Competitiveness Ranking results to other ASEAN countries. As the name suggests, the ranking analyzes and ranks 64 countries according to how they manage their competencies to achieve long-term value creation. Indonesia climbed 10 spots from 44th in 2022 to 34th place in the 2023 results. The IMD Competitiveness Ranking attributed Indonesia’s increase in ranks to its achievements in economic performance and business efficiency. 

While Indonesia surpassed the Philippines (52nd), Jakarta still has not beaten its fellow ASEAN members Malaysia (27th) and Thailand (30th). Indonesia is also still far behind Singapore which already claims the 4th place, according to Jokowi.

“It is difficult to boost exports today. Even achieving a slight increase is extremely difficult. All countries are after one thing: investment,” Jokowi said while adding that Indonesia was looking for export-oriented investors.

“In the past, we had been too focused on marketing now, telling investors to come to Indonesia. However, once the investors arrive, they decide to cancel the investment because of land acquisition problems and bureaucratic red tape to get a license. We need to take care of this,” Jokowi added.

Indonesia’s investment target for 2024 shows that it is becoming more ambitious as the years go by.

The Southeast Asian country aims to attract investments worth Rp 1,400 trillion this year, up by 16.7 percent versus the Rp 1,200 trillion target for 2022. The government reported the investment realization already stood at Rp 1,053.1 trillion as of September. This is about 75.2 percent of the full-year target in 2023.

On export-oriented investors, the National Statistics Agency (BPS) reported that Indonesia’s exports amounted to $214.4 billion in January-October 2023. This marks a 12.2 percent decline from the same period last year.

Read More:Hong Kong Investors Show Strong Appetite for Indonesia

Add as a preferred source on Google +