The government is asked to prepare a strategy that can invite quality, competitive, and export-worthy investment so as to generate foreign exchange. This is done so that Indonesia can record economic growth above five percent. Indef Senior Economist Didik J Rachbini said Indonesia had achieved an average economic growth of seven percent in the 1980s. To achieve that, the government must focus on quality investment for export purposes. "Reflecting on the current stagnation of five percent economic growth, Indonesia must change its strategy towards increasing competitiveness, which has an investment element and is export-oriented," he said during a webinar in Jakarta, Wednesday, September 8, 2021.
He added, the main point is quality investment. Second, when exporting, all efficiency efforts must be carried out by factories wishing to export. This will improve Indonesia's ICOR from 6.2 to around 2.4. "If necessary, deregulation and de-bureaucratization will be carried out which will help smooth production and increase competitiveness for exports. So what must be done is to carry out an outward looking strategy and a competitiveness strategy," he said.
According to him, the current government should start focusing on economic restructuring. For example, the banking sector that supports exports must be provided with facilities. In addition, all things that are inefficient must be corrected so that they really focus on increasing export competitiveness. "Another strategy is that PMA must be enlarged. Domestic investment must be pursued towards industrialization and if it is still not enough, it must continue to be encouraged. Industrial and office areas must be assessed whether the industrial portion is still lacking," he concluded.
