In the face of local and global threats, challenges and uncertainties, national resilience is necessary to ensure the survival of all Indonesians. Indonesia’s concept of national resilience is based on five main elements. One of them is economic resilience.
Economic resilience is now part of the National Medium-Term Development Plan (RPJMN) 2020-2024, which consists of drafting a development program to increase national economic resilience, in particular by increasing added value, employment and investment. in the real sector.
The growth of investments in the real sector is expected to have a positive chain effect on economic resilience. As the legal basis to encourage investment, the Indonesian government has enacted the Job Creation Law number 11 of 2020 or the Job Creation Law as a legal framework to facilitate business and strengthen the climate. investment in Indonesia.
There are 11 groups of regulations derived from the Job Creation Law, which include improving the ecosystem of investment and business activities, business licensing, and ease of doing business. Prior to that, there were also 16 economic policy packages from 2015 to 2018, in the form of deregulation policies, investment permit facilities, ease of doing business, and tax facilities.
PMA and PMDN synergy strategy
Indonesia’s economic resilience test will take place in 2020, during which Indonesia and the world face the COVID-19 pandemic that has weakened the global and national economies at various levels, both in the ‘household scale and macro scale within the household level.
However, in the second quarter of 2021, there was an increase in the realization of investments of 16.2% compared to the previous year, according to a press release from the Fiscal Policy Agency, namely the Investment foreign (LDC) increased by 19.6% and domestic investment (PMDN) increased by 12.7%.
The growth of investments in PMA and PMDN is expected to produce synergy, namely that PMA does not replace PMDN, but can encourage the growth of PMDN through the creation of new supply and value chains, development of innovation and technology transfer. In addition, this increase is also expected to have a positive impact on the national economy, in the form of job creation, increase in domestic consumption, strengthening of exports of investment activities and strengthening of foreign exchange reserves. country.
Focus on the ESDM sector and the food sector
By sector, increased investments can be directed to the real sector, in particular the energy, resources and minerals (ESDM) and food sectors. This is linked to an increase in the population to over 300 million people by 2045, which has an impact on increasing basic food and energy needs.
Currently, most food needs are still covered by imports. To increase economic resilience, food and energy preparedness must not only be able to meet national needs, it must also be export oriented with more added value. For example, metallic minerals which have a high potential to be swallowed by processing.
In addition, the existence of FDI activities can also be an opportunity for local investors to increase their knowledge and competitiveness through technology transfer. It is hoped that there will gradually be a more environmentally friendly and sustainable transfer of technology with products that meet local and export markets.
Thus, economic resilience will not only be achieved in terms of meeting the needs of the Indonesian people and export orientation, but also economically and environmentally sustainable, making Indonesia more resilient to local and global challenges in the future. .
This article is a personal opinion.