Jakarta (ANTARA) - Indonesia's National Development Planning Ministry has set the target of investment or Gross Fixed Capital Formation (PMTB) to grow by 6.88 to 8.11 percent during the period of 2020-2024.
"The increase in investment will aim at improving productivity to boost efficiency of the investment," Minister of National Development Planning/Head of the National Development Planning Agency (Bappenas) Bambang Brodjonegoro said in a statement here on Wednesday.
Bambang made his statement during the BBC Hard Talk as part of series of activities of the Indonesia Infrastructure Investment Forum (IIIF) 2019 in London, England on Tuesday (July 2).
The minister elaborated that in a bid to reach the target, foreign as well as domestic private investment would be encouraged through deregulation of investment procedures.
The government has synchronised regulation on licensing, and made all efforts to increase its rank in Easy of Doing Business (EoDB) from 73 in 2019 to 40 in 2024.
The government, including state firms, has also increased its investment especially for infrastructure development, Bambang said.
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The government's shares in infrastructure development has reached 50 percent of gross domestic product (GDP) and capital expenditure to reach 2.3 - 2.8 percent in 2024.
According to the minister, Indonesia would need US$429.7 billion of investment in infrastructure or 6.1 percent of its GDP during 2020-2024, a 20 percent increase compared to US$359.2 billion of investment in the sector during 2015-2019.
Of the total investment, the government and the state-run firms would contribute 11.6-13.8 percent and 7.6-7.9 percent respectively, while the remaining would be sourced from public and private investment.
"The government has encouraged the role of private sector in infrastructure development under the Public Private Partnership (PPP) scheme and Non-Government Budget Investment Financing (PINA)," he remarked.
For investment funding in 2020-2024, he added, the government would also need to explore financial market, especially non-banking sector; increase access to financial services or financial inclusion; and optimize funding alternative.
Source: Antara News