Wednesday, 17 November 2021 11:43

The Government Provides Investment Facilities for the Energy and Mineral Resources, Food, and Defense Sectors

Deputy for Investment Climate Development (PIPM) of the Ministry of Investment / Investment Coordinating Board (BKPM) Yuliot conveyed that investment is important to encourage national resilience and economic resilience. For this reason, the government is keen to provide investment facilities and ease of doing business. “In line with the concept of economic resilience in the 2020-2024 National Medium-Term Development Plan (RPJMN), the agenda for improving the investment climate is how we increase domestic added value, create wider employment opportunities, as well as investment in the real sector and industrialization. For the aspect of economic competitiveness, we have also made various improvements in terms of regulations and ease of doing business," said Yuliot at the National Resilience and Investment Policy event, Tuesday (16/11). Furthermore, Yuliot also explained the policies and investment facilitation carried out by the Government of Indonesia in the three main sectors of national security, namely the ESDM sector, the food sector, and the defense sector. For the ESDM sector, the facilities provided include easing share ownership restrictions on mining support services.


Then in the agricultural sector, there are efforts to increase food security and export orientation, as well as relaxation in terms of business fields in the agricultural sector. Meanwhile, for the defense sector, there was a shift in government policy from defense spending to investment policy to strengthen the production base of the domestic defense industry. On the occasion, the Director of Mineral and Coal Program Development of the Ministry of Energy and Mineral Resources Sunindyo added the importance of the role of investment in the three pillars of energy security related to investment by referring to Government Regulation no. 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities which was recently published. First, the granting of authority from the Ministry of Energy and Mineral Resources to the Ministry of Investment/BKPM to facilitate licensing for business actors. Second, business certainty through a careful evaluation of the issuance of permits. Lastly, prioritizing national interests in meeting domestic energy needs and developing the battery industry to support new and renewable energy (EBT).


In accordance with the mandate of Law no. 3 of 2020 concerning Mineral and Coal Mining, increasing added value for mineral mining commodities must be carried out through purification processing in order to increase added value," concluded Sunindyo. In terms of food security, the Head of the Center for Plant Variety Protection and Agricultural Licensing (PVTPP) of the Ministry of Agriculture, Erizal Jamal explained that the Ministry of Agriculture has a special program to accelerate the increase in production capacity and food supply chains, such as the Food Estate developed in Central Kalimantan, Central Sumba and North Sumatra. The Food Estate program is expected to increase investment in the region and promote food security. "The Ministry of Agriculture is trying to formulate five ways to act in terms of supporting agricultural development strategies in terms of food security, increasing competitiveness, and economic growth, namely through the implementation of the Food Estate to increase production capacity, diversify local food, strengthen food reserves and logistics systems, develop modern agriculture, and the Three Times Exports Movement (GRATIEKS),” explained Erizal Jamal.


Evi Lusviana from Pinhantanas said that the government's role as the main buyer of the defense industry in Indonesia is very important to strengthen private investment. In addition, the government is also expected to provide incentives and convenience in licensing and providing land for the defense industry. "We want to get certainty about the purchase from the government, because the defense industry is capital-intensive and technology-intensive, once the production is not purchased, imagine our slump," said Evi. This webinar activity has been held twice, the previous one in October 2021. Participants who participated came from various backgrounds, including business actors, legal practitioners, private employees, academics, tax consultants, media, and management consultants.


Source: https://nasional.kontan.co.id/news/pemerintah-berikan-fasilitas-investasi-untuk-sektor-esdm-pangan-dan-pertahanan



 

 

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