President Joko Widodo is reportedly considering the formation of two additional ministries, one for investment and one for export affairs. The country’s low investment and export value, which is far below other Southeast Asian countries, has led him to consider the option.
“I have raised the question in a cabinet meeting last week, whether or not we need a minister of investment and a minister of exports. Many countries in Europe have both of these positions to boost their economic growth,” the President said on Tuesday 12th March, during his opening speech in a national investment coordination meeting at the Indonesia Convention Exhibition (ICE), South Tangerang, Banten.
Difficulties in obtaining an investment permit for Indonesia is by far one of the reasons why investors consider neighbouring countries to be a more attractive investment opportunity. The President, a former furniture businessman who is familiar with export and import regulations, later explained how the trade war between the United States and China led the USA to move its investment to Vietnam, and not to Indonesia.
“Why did they enter Vietnam when Indonesia happens to be the main supplier of wood, rattan, and bamboo? What is wrong with Indonesia?” Jokowi questioned. Jokowi also pointed out that Indonesian rattan, wood, and bamboo is only accounted for 3 per cent of the American market, while Vietnam’s products are at 16 per cent. The President is determined to remove major obstacles and regulations affecting the export of goods and investment from other countries.
Source: Kompas, CNN
Image: Merdeka