DAILY DISWAY - Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia is confident that the 2024 presidential election will be held in one round. That's why he also believes that the conducive political situation will enable Indonesian investment this year to reach the target of IDR 1,650 trillion.

So, Indonesia can achieve economic growth of above 5 percent. "Hopefully what the KPU decides can only last one round. "Because we see that the difference is very large, but we are waiting for the KPU's decision," said Bahlil at the 2024 Post-Election Investment Prospects press conference at his office, Monday, March 18 2024.

Of the total investment target, Bahlil detailed that Foreign Direct Investment (PMA) remains the same as last year. Namely a minimum of 52 percent. This is because the global economy has not yet recovered and stabilized.

Moreover, the current geopolitical situation is still characterized by tension in the Middle East. Also Ukraine and Russia where there are still no signs of recovery. So, many countries are already experiencing a recession.

Bahlil reported that investment realization from January to December 2023 reached IDR 1,418.9 trillion. This figure was recorded as 101.3 percent of the target set at IDR 1,400 trillion. The investment realization achievement consisted of PMA of IDR 744 trillion or 52.4 percent of the target.

Then, another 47.6 percent was Domestic Investment (PMDN) or IDR 674.9 trillion. And the largest investment realization occurred outside Java with achievements reaching IDR 730.8 trillion or 51.5 percent of the target.

Meanwhile, realization on the island of Java was recorded at 48.5 percent or reaching IDR 688.1 trillion. Of this total investment, it has absorbed 1.8 million Indonesian Workers (TKI).

Bahlil also resolved stalled investments. Namely IDR 558.7 trillion or around 78.9 percent of the total IDR 708 trillion. The remaining amount, amounting to IDR 149.3 trillion, said Bahlil, was difficult to complete due to a number of obstacles.
"We can no longer make improvements. This is because it can no longer be executed, due to the companies experiencing internal difficulties," he said.

Furthermore, he explained various positive developments in the realization of other investments. Among them is the PT Lotte Chemical Indonesia factory in Cilegon with an investment of IDR 59.4 trillion. This investment is the result of completion of stalled investment since 2016.

Now the progress of investment realization has reached 85 percent. It is estimated that production will start this year. The resulting products will be import substitutes. The composition is 70 percent for domestic needs and 30 percent for exports.

Bahlil then emphasized that his party was accelerating the revision of Government Regulation (PP) number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities. If the regulations are complete, Bahlil said, the government will increase its shares in PT Freeport Indonesia (PTFI) by 10%. From the previous 51% to 61%.

The revision of PP 96 was brought to a Limited Meeting (Ratas) with the President of the Republic of Indonesia Joko Widodo some time ago. With this revision, said Bahlil, there will be adjustments and acceleration in the framework of sustainable investment.

"If that happens and the potential for additional Freeport shares in Indonesia becomes 61 percent, it means that Freeport no longer belongs to someone else, but already belongs to us," he said.

Under the current regulations, a new contract extension can be submitted no sooner than 5 years before the contract ends. And no later than 1 year before the contract ends. "We changed it because it is integrated with the smelter," he explained.

Apart from that reason, specifically for PT Freeport Indonesia (PTFI), for example, applications for contract extensions can be made immediately. Remembering that there must be certainty regarding investment. Especially for carrying out production at the company's mines.

"In 2035, Freeport's production will start to decline, while we will explore underground for at least 10 years," continued Bahlil. So, he said, if we start thinking about extending it until 2035, there will be a vacuum of approximately 5-10 years.

(SOURCE)