IID 2020 is Expected to Increase Jakarta Investment Projects

The Bank Indonesia (BI) Jakarta Office Representative strongly supports Indonesia Investment Day (IID) 2020 event held by the Indonesian Embassy in Singapore, the Indonesia Investment Promotion Center (IIPC) Singapore and the BI Office Representative in Singapore. This year's IID event is the third time and is being held virtually in response to the COVID-19 pandemic conditions in various parts of the world.

This is expected to be able to encourage increased investment and economic activity in Jakarta

IID 2020 for Jakarta is held on September 8-9, which consisted of Webinar sessions and One-on-one Meetings. The projects offers at this event are the MRT North-South/East-West line, LRT Jakarta, Transit Oriented Developments, Intermediate Treatment Facility - Jakarta Waste to Energy and Jakarta Industrial Estate Pulogadung.

"This is expected to be able to encourage increased investment and economic activity in Jakarta," expressed BI Jakarta Representative Office Chief, Hamid Ponco Wibowo, Tuesday (9/8).

City Gets Appreciation for Achieving Highest National Investment Realization

He stated the IID 2020 event was an effort to increase investment in Jakarta. Moreover, real efforts needed to be conducted on an ongoing basis where the current conditions being a strong impetus to continue to increase investment.

Jakarta Provincial Government continued to give support investment activities in Jakarta through various policies issued, such as ease of licensing for doing business and readiness in dealing with investment issues.

It was because Jakarta's economic growth in this year's second quarter experienced a deep contraction as a result of the pandemic. It contracted by -8.22% (yoy), decreased sharply compared to the previous quarter which still grew positively at 5.06% (yoy).

This development was inseparable from the impact of the weakening global economy in line with the pandemic and declining domestic economic activity as a result of the large-scale social restrictions (PSBB) policy to prevent the spread of the pandemic.

"The contraction in growth occurred in all components of Jakarta's GRDP (Gross Regional Domestic Product) expenditure, with the contribution of the deepest decline coming from investment spending (gross fixed capital formation) and household consumption," he said.

Apart from the impact of the global economy too, he assessed, it was because the implementation of PSBB results in shorter working hours and a reduction in the number of field workers as a result of the need to maintain distance according to health protocols.

"Investment contraction is more restrained from investment originating from PMA and PMDN in Jakarta, which reached Rp 30.1 trillion. This investment value is the highest nationally. Investment contributes significantly in driving Jakarta's economic growth with a share of up to 34 percent of GRDP," he mentioned.

Previously the 3rd Virtual Grand Launching of IID was held on July 22, which was then followed by a series of promotional activities in East Java, Central Java, North Sumatera, Utara Sulawesi, Jakarta, Bandar Lampung, Nusa Tenggara Barat, West Java, East Kalimantan, Riau Islands and South Sulawesi.

Its event involved the provincial government, Bank Indonesia Representative Office, investment project owners and foreign investors interested in investing in Indonesia.