President Jokowi, Finance Minister discuss instruments to increase investment

Jakarta (ANTARA News) – President Joko Widodo (Jokowi) held a meeting with Finance Minister Sri Mulyani to discuss the follow-up of instruments that can be used to encourage investment.

“We have formulated on how to use state budget instruments, including taxation, in an effort to encourage various priority activities, be it is an investment in the framework of business expansion or a pilot project,” Sri Mulyani stated at the State Palace complex here on Monday.

Through the formulation, the government can understand the structure of financing and risks from investors, especially in the country.

The government can also understand the risks of investment, with the potential gains of the business world.

“We will see how we can use taxes or other incentives in the state budget to compensate for that risk,” the minister noted.

Widodo will hold a cabinet meeting to discuss the follow-up of the formulation, she stated.

A number of instruments, including tax allowance and tax holiday, could increase investment.

Indonesia continues to boost investment and trade all over the country and abroad.

One of efforts is simplifying the regulations and policies for the business in an attempt to provide ease in managing business requirements and logistics.

The government will provide more incentives by reviewing the tax allowance as well as income tax (PPh) in accommodating industrial expansion.

Vice President Jusuf Kalla earlier held a coordination meeting with ministers in the field of economy at the Vice Presidents Palace in Jakarta on Friday to boost investment and exports in Indonesia.

Based on Antaras observation, the closed-door meeting was attended by Coordinating Minister for Economic Affairs Darmin Nasution, Trade Minister Enggartiasto Lukita, Industry Minister Airlangga Hartarto, Sri Mulyani, and Head of Investment Coordinating Board Thomas Lembong.

Chairman of Vice Presidential Team Sofyan Wanandi revealed at the meeting that Kalla had urged related ministers to seriously identify issues that have hampered Indonesias investment and commodity exports.

“Now, we are looking at ways to accelerate the investment growth, as our investment and exports are currently declining. All sorts of problems were discussed during the meeting,” Wanandi added after attending the meeting.

The ministers should complete some homework from Kalla within two weeks to identify problems that hinder investment and exports.

“Within two weeks, the ministers will announce several significant issues, so that we can explore some possibilities to solve the barriers in short, medium, and long term,” he pointed out.

Source: ANTARA News