The Minister of Investment and Head of the Investment Coordinating Board, Bahlil Lahadalia, S.E., emphasized the importance of the campus’s role in producing young entrepreneurs who will later play a role in the development of the Indonesian economy. The layoffs that occurred during the Covid-19 pandemic prove that being an employee is not the right choice for campus graduates. Bahlil encourages students to not only want to be employees, but also entrepreneurs.
“Indonesia has tens of thousands of universities ranging from Aceh to Papua. Just imagine what is going to happen if all the students graduating only want to be employees. The available job opportunities will certainly be more limited, and even make universities a factory that produces intellectual unemployment,” said Bahlil when delivering a general lecture held by the School of Strategic and Global Studies, Universitas Indonesia (SSGS UI) and the SSGS Student Forum, on Tuesday (12/7).
The Director of SSGS UI, Athor Subroto, S.E., M.M., M.Sc., Ph.D., sees investment as the motor of development. In fact, investment in Indonesia continues to grow because it is used as a driving force for the country’s economy after the Covid-19 pandemic. Investment in Indonesia is currently in a good phase thanks to the efforts of all parties, especially the Indonesian Ministry of Investment.
“Today is an honor for us because Mr. Bahlil Lahadalia, as the Minister of Investment/Head of Investment Coordinating Board, was able to visit SSGS UI in between his busy schedule. We hope to hear firsthand his experience in developing the investment climate in Indonesia and stimulate the Indonesian economy, which is now in positive progress,” said Athor at the opening of the public lecture which took place at the IASTH Building, UI Salemba Campus.
Half of the current economic growth of more than 5.1%, said Bahlil, comes from public consumption. People’s consumption and purchasing power increased due to the absorption of employment opportunities. Of course, these jobs do not only come from the government, but also from private companies that are driven by investment.
In Indonesia, investment is now in a positive condition because it sits at Rp901 billion, which exceeds the investment target in the National Medium-Term Development Plan In 2021, investment reached Rp. 856 billion and President Joko Widodo is targeting this figure to reach Rp. 900 billion this year.
This condition is even more encouraging because this figure is an investment from the real sector, not from the financial sector as well as oil and gas. In addition, the regional distribution of investment has also changed. If previously investment only rested on the island of Java, now the investment rate is even greater outside Java. Investment outside Java reached 52%, while investment in Java was 48%.
“The large percentage of investment outside Java is due to the development concept initiated by President Joko Widodo. Massive mainstreaming of infrastructure development outside Java encourages a balance between Java Island and the other regions. Therefore, there are new centers of economic activity that stimulate the economic life of the community. Today, this expectation is fulfilled with a higher percentage of investment outside Java than investment in Java,” said Bahlil closing his presentation.
Currently, the Ministry of Investment and the Investment Coordinating Board are implementing four strategies to improve the investment climate outside Java. First, through the construction of highways, ports, and road accessibility. This is one of the requirements for investors to enter an area. Second, fiscal incentives such as tax allowances in the form of income tax deductions given to investors. Third, approaching investors to realize a positive list and investment priorities, potentially outside Java. The positive list and investment priorities also regulate the obligations of investor and MSME partnerships to improve the local economy. Fourth, the implementation of Government Regulations related to the ease of establishing a business in the regions which is the purpose of Law no. 11 of 2020 concerning Job Creation.
