The B20 Investment Forum, organized by the Indonesian Chamber of Commerce and Industry (KADIN), has successfully wrapped up a series of business meetings and deals, with 18 memorandums of understanding (MoUs) worth approximately Rp 75 trillion officially signed during the event.
Held on Nov. 11 at the Bali Nusa Dua Convention Center (BNDCC) I in Bali, the B20 Investment Forum was part of a series of sideline events of the B20 Summit, which aimed to encourage post-pandemic global recovery.
The forum itself consisted of three main activities: Investment Forum, Memorandum of Understanding Signings and B2B Business Matchmaking Meeting. Overall, the event successfully explored investment opportunities in Indonesia with 18 companies from 11 countries, which signed MoUs worth a combined Rp 75 trillion.
The high degree of interest from international investors to invest in Indonesia is inseparable from the alignment of the B20 priority agenda, which was followed up by KADIN Indonesia by inviting investors outside of the Group of 20 countries, including Singapore and the United Arab Emirates.
KADIN Indonesia chair Arsjad Rasjid said that the large number of countries investing in Indonesia could not be separated from the role of the government, working in tandem with the private sector, in continuing to carry out bureaucratic and structural reforms.
“Currently, what concerns business actors and investors are the regulations that provide convenience. Through the Job Creation Law [UU Cipta Kerja], the government encourages investors to invest in sectors that support the energy transition and reduce carbon emissions, as well as regulations that can guarantee incentives and convenience for industry,” he explained.
In addition, he said that investment in Indonesia must continue to increase so as to build and strengthen the domestic market amid the threat of a recession and global crisis, which is predicted to escalate in the next year.
B20 chair Shinta W. Kamdani said that B20 Indonesia had ensured that the implementation of the B20 had an impact on increasing Indonesian investment, not only by producing policy recommendations, but also a lasting legacy.
Shinta believes that the more than Rp 75 trillion worth of investment that was signed at the B20 Investment Forum will continue through other investment agreements that can encourage Indonesia’s economic recovery through collaboration with the global business sector.
“This large investment was enabled by support from the Investment Ministry, which helps transform investment opportunities into real investments. The Investment Ministry together with KADIN Indonesia also continues to convince investors to see investment opportunities in the regions by collaborating with regional companies and [micro, small and medium enterprises] MSMEs as a commitment from B20 Indonesia, which encourages economic recovery and a more inclusive economic growth,” she said.
Investment Minister Bahlil Lahadalia, who attended the opening of the B20 Investment Forum, said that Indonesia had succeeded in achieving its investment target in 2021 amid the height of the COVID-19 pandemic under President Joko “Jokowi” Widodo’s leadership with support from industry.
“During the era of President Jokowi, foreign direct investment [FDI] experienced the largest growth of all time since the Reform era. Investors need not be doubtful about Indonesia, as our structural reforms have been able to keep our economy growing, our inflation remains under control, and the process of obtaining business permits only needs one door, along with various incentives. Infrastructure is also developed evenly to encourage equity in investment so that it is no longer Java-centric,” he explained.
Bahlil also noted that the government always cooperated with the private sector, especially with KADIN Indonesia, to advance the national economy by inviting both foreign and domestic investors. Foreign investors are only required to comply with applicable regulations, bring in renewable technology, and invite local entrepreneurs and MSMEs as partners.
Meanwhile, Coordinating Minister for Maritime Affairs and Investment Luhut Panjaitan said in his opening remarks that Indonesia’s post-pandemic economy was growing rapidly compared with other nations. As a large country, he added, Indonesia had a lot of unique potential that other countries do not have to attract global investors.
“The government continues to increase economic growth from 5 to 6.5 percent, reduce the impact of climate change through decarbonization and adopt new technologies and renewable energy. Through steady and secure political and macroeconomic stability, Indonesia continues to become a country that applies the principles of sustainable development,” he said.