Britcham Indonesia - Regional Opportunities

Regional Opportunities

Following the re-election of President Joko Widodo (Jokowi) for period 2020-2024, the Ministry of National Development Planning and the National Development Planning Agency (Bappenas) announced the Medium-Term Development Plan 2020-2024 (RPJMN) in an effort to maximise and prioritise the development in five main sectors.

 

  1. Infrastructure Development

Building infrastructures that connect large infrastructures with production areas, such as, small industries, special economic areas, tourism, paddy fields, plantations and fish embarks. 

Policy direction:

  • Establishment of highways, airports and trans Papua roads, in support of the national food and small industries and food estate in Merauke.
  • Connectivity to support tourism. The construction of the Manado-Bitung Toll Road, Sam Ratulangi Airport, and airport road access in support of tourism in Likupang. 
  • Palapa Ring project, in support of the use of digital technology in Small and Medium Industries (IKM) towards Go-Digital IKM.
  • Water resource infrastructure. The construction of reservoirs and water in the eastern region of Indonesia to support the development of Special Economic Zone Sorong and irrigation for plantations, rice fields and fish embarks. 

 

  1. Human Resource Development

Ensuring the health of pregnant women, infant, toddler and children, reducing maternal-infant mortality, increasing the quality of education and vocational training, building Indonesian talent management institutions, and support for high-talented diaspora. 

Policy direction (health & well being development):

  • Health improvements for mother and child to tackle maternal and child mortality, and improved reproductive health. 
  • Continuous support for maternal and neonatal services by encouraging all deliveries in health facilities.
  • Expansion and development of basic immunisation. 
  • Improved nutrition of adolescent girls and pregnant women.
  • Expansion of access and quality of family planning and reproductive health services.
  • Acceleration in the reduction of stunting by providing parenting counseling and access to clean drinking water and proper sanitation.
  • Strengthening the health system by reinforcing basic health services and referrals, increasing health workers’ competence and fulfilling pharmaceutical preparations and medical devices.


Policy direction (vocational training development):

  • Industrial Cooperation based Vocational Education and Training, with an increased role and cooperation by industries. Through the implementation of an incentive system or regulations for industries, and mapping the needs and development of areas of expertise, including the strengthening of labor market information. 
  • Reformation of the execution of education and vocational training which includes:
  • The alignment of curriculum, learning models and study programs.
  • Dual TVET, teaching factory and apprenticeship/internship.
  • Enhancing soft skills and foreign languages.
  • Entrepreneurship in schools, madrasahs and pesantren.
  • Apprenticeship for teachers/instructors in industry, as well as instructors/practitioners from industries.
  • Strengthening the command of education and vocational training by:
  • Administering an education and new vocational study programs body 
  • Increasing accreditation.
  • Creating a funding scheme to improve skills.
  • Financial management flexibility in production units/teaching factory/teaching industry.
  • Establishing a TVET committee.
  • Strengthening of Competency Certification System by heightening competency standards based on occupations, referring to international standards and synchronising certification systems across various sectors. 
     
  1. Encouragement in Investment 

Inviting as much investment as possible to create more job opportunities, cut licensing, extortion and other investment barriers.

Policy direction:

  • Certainty of business and investment laws through:
  • Action plan to increase the Ease of Doing Business Ranking. 
  • Coordination of Ease of Business and National Competitiveness Policies.
  • Simplification of licences that hinder investment.
  • Implementation of the simplification, harmonization and synchronization of investment licensing regulations at the level of central/ministry of institutions and regions.
  • Facilitation in ease of doing business and investment through:
  • Evaluation and implementation monitoring of regulations regarding Negative Investment List.
  • Implementation of the integration of the Electronic Integrated Business Licensing System (SPBTSE).
  • Development and implementation of the Electronic Integrated Business Licensing System (SPBTSE)
  • Coordination of investment development policy 
  • Utilisation of tax holiday tax allowance 
  • Structuring of labor regulations

 

  1. Bureaucratic Reform

Structural reforms in order to create institutions that are simpler, more rapid, faster service and granting permits, and efficient.

Policy direction:

  • Implementation of e-services in the sector of licensing services
  • Expansion of integrated services in the licensing sector
  • Development of an integrity zone in the licensing service unit
  • Structuring in the coordination with ministries and institutions that deals with sectoral licensing

 

  1. National Budget Plan (APBN) Allocation

Guarantees a focused and target oriented use of the National Budget Plan (APBN) in ensuring that it provides economic benefits for the Indonesian citizens, improving  social welfare. The National Budget Plan (APBN) will be spent on main projects, such as:

  • Finalising the completion of tourism regions (Lake Toba, Borobudur, Mandalika, Labuan Bajo, Bromo, and Wakatobi)
  • Vocational training and education
  • Trans-Sumatra Toll road development
  • Construction of 10 million drinking water connections to homes
  • Acceleration of decreasing maternal and stunting deaths
  • Construction of multipurpose reservoirs
  • Strengthening disaster mitigation

 

Source: Medium-Term Development Plan 2020-2024 (RPJMN), National Budget Plan 2020-2024 (APBN)

*This information is accurate at the time of publication. For the most updated information, please contact us at obn.team@britcham.or.id