Jokowi wants regions to upgrade investment climate
Jokowi hinted this might be the reason why many investors canceled their investment plans because they had to deal directly with the bureaucracy.
Jokowi emphasized the importance of local offices ensuring a smooth licensing process down to regional level because regions were the administrations investors dealt with first before realizing their investments.
“I am asking one-stop integrated services, regents, mayors and governors to just ‘close their eyes’ and provide permits to any industry [...] accompany those investors, show them that we want to provide them with land or anything,” said Jokowi at a national meeting held by the Investment Coordinating Board (BKPM) in Tangerang, Banten.
“We have huge power in our natural and human resources, but we have been far too comfortable in exporting raw materials. All this time, we have been too afraid to venture into downstreaming and industrialization.”
It had also received positive investment ratings from the world’s top agencies like Standard and Poor’s, Fitch Ratings and Moody’s last year despite global economic turbulences that had also affected Indonesia, said Jokowi.
Meanwhile, export growth in the same year slowed down significantly, falling to 6.65 percent from 16 percent in 2017.
“I expressed it last week during a Cabinet meeting [to evaluate] whether it was necessary to [appoint] ministers for investments and exports,” he added, but did not elaborate further on the idea.
BKPM head Thomas Lembong said Kopi Mantap would make communications between investment offices more efficient, thus reducing overlapping policies or abundant procedures often encountered by investors when requesting permits at regional offices.
“The spirit [of the app] is to encourage capitalization as high as possible,” Thomas said. “Our foremost attention is certainly on the OSS, but the app we are launching this week has also become an important tool for us to keep an eye on investment realizations.”