JAKARTA. The Executive Director of the Institute for Development of Economics and Finance (Indef), Tauhid Ahmad, said that the 2022 investment target of IDR 1,200 trillion is not realistic and ambitious. Therefore, the government needs to revise the said target, especially following the Constitutional Court Decree regarding the revision of the Job Creation Act.
According to Ahmad, the decree that mandates the government to revise Act No.11/2020 regarding Job Creation could cause decreased investments, particularly Foreign Investments or direct international investments. He saw that there might be potential weakening in investments, more so on Foreign Investment, in response to the decree to revise the Job Creation Act.
“It would be better for the government to revise the investment target in 2022. The 30% rise [from 2021 target] to IDR 1,200 trillion is not realistic and ambitious,” Ahmad stated during a webinar yesterday (20/12).
In November 2021, the Constitutional Court decided that the Job Creation Act was conditionally unconstitutional and gave two years for the government to revise the act. The Job Creation Act is an omnibus bill intended to facilitate business permit acquisition and investment processes.
Ariyo Irhama, a researcher in Indef, also added that the said decree could bring limited effects and influences to the investment climate. “The said decree would drive investors to opt for a wait-and-see option while awaiting the Job Creation Act revision by the government,” he predicted. (AM/ZH)