Indonesia can reach investment target despite court ruling minister

02-Dec-2021 Intellasia | Reuters | 5:02 AM Print This Post

Indonesia’s Investment minister Bahlil Lahadalia said on Wednesday he did not expect disruption in fourth quarter investment realisation, despite the country’s constitutional court ordering amendments to a law aimed at cutting red tape.

The Constitutional Court last week ruled that the 2020 Job Creation Law was unconstitutional due to procedural flaws and the government must make changes within two years.

The law is President Joko Widodo’s flagship legislation aimed at boosting investment, especially into mineral ore processing, including building an electric vehicles battery industry to take advantage of Indonesia’s rich nickel reserves.

But the law, which saw the revision of more than 70 existing laws and was welcomed by businesses, has sparked protests across Indonesia and complaints that it undermined labour rights and environmental safeguards.

The government has targeted 900 trillion rupiah ($62.78 billion) investment this year, from both domestic and foreign investors. Indonesia expects this to climb to 1,200 trillion rupiah next year in order for the economy to grow above 5%, Bahlil told a virtual briefing.

These targets would be achieved as long as the pandemic remained under control, he said.

Bahlil said his office was reassuring investors that the court ruling did not affect any clauses in the law and the rules remained in effect until the amendments were made.

“We are doing direct communication, day and night, with around a thousand big companies,” he said, “And based on these communications, we found that they understand the situation and believe in the leadership of the president.”

President Joko Widodo on Monday said his government would ensure legal certainty for investors, and that investments that had been made and those that were currently being processed would remain “safe and secure”.

Bahlil said the government would stay focused on developing downstream industries, green power projects and green industrial estates in 2022.

($1 = 14,335 rupiah)

https://www.reuters.com/markets/commodities/indonesia-can-reach-investment-target-despite-court-ruling-minister-2021-12-01/

 

Category: Indonesia

Print This Post

Comments are closed.