New Ministry Will Not Solve Investment Troubles

By Editorial Team 21/08/2019
Summary

The formation of Joko Widodo’s Working Cabinet II in 2019-2024 will be slightly different from the previous one. The president revealed that he would add another ministry named Investment Ministry. The ministry will focus on the Indonesian digital and creative sectors. The plan received several mixed responses from various sides, from company owners to research institutions. One of the responses came from the Institute for Development of Economics and Finance (INDEF).

The INDEF Vice President Director Eko Listiyanto said that the purpose of forming the new ministry is to crack acute investment problems in Indonesia such as the synchronization problem between the central government and regional administration. The existing scheme only allows the central investments carried through by the central Investment Coordinating Board (BKPM), while the regional investments by regional BKPM. Both BKPMs do not really relate to each other or work hierarchically, and as a result, regional BKPM can not directly implement any regulation formed by central BKPM.

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