Britcham Indonesia - Regional Opportunities

Regional Opportunities


From the aspect of the government’s interest, as contribution for absorption of more workers, creation of added values and still on the basis of natural resources, the followings are the prioritised sectors:



1. Electricity
All this time we have electricity surplus only in Java and Bali, while other regions suffer electricity deficit. For that reason, the government would like to bring investment to outside Java with adequate electricity infrastructure development. Therefore, the government targets 35,000 megawatt power plants to be constructed across Indonesia from 2015 until 2019. 



2. Labour Intensive Projects
Example of this project is textile, kids’ toy, and furniture industries. Why does it seem that we put aside technology and prefer these industries? Because many people in Indonesia still do not know technology and do not have high level of education. With the government opening these job opportunities, it is expected that unemployment rate will decrease and revenue for the government will increase from income tax. 



3. Export-based Investment and Import Substitution
The government will bring export-oriented investment with the main objective to produce commodities that can be exported. That way we could decrease quantity of goods to be imported. We can also use the goods domestically.



4. Downstream Industry
Indonesia is ranked 1st until 7th in the whole world as producer of main commodities such as cocoa, oil palm, tint, copper, coal and geothermal energy. We have in geothermal 40% of the entire world’s geothermal energy reserve. The government wants these commodities to not be sold unprocessed. This process will be improved in Indonesia, thus giving contribution to Indonesian economy and Indonesian people become more prosperous because these industries will absorb many workers, even with higher income because it requires special skills and higher education. 



5. Maritime
Business players all this time have tended to run their business not in accordance with the applicable regulations. Many fish are caught in the sea, sold in the sea and taken to other countries, decreasing government’s revenue from income tax and this causes loss to the state. As we already know, Minister Susi has made moratorium that no new permits are issued. The entire system is being improved so that all business players will follow the applicable regulations in Indonesia. 



6. Tourism
We want to repeat Indonesia’s success with tourism potential and hospitality of Indonesian people so that this country becomes a main destination for foreign tourists. 




Source: recent interview with Head of Indonesia Investment Coordinating Board London