Head of Indonesia Investment Coordinating Board (BKPM), Bahlil Lahadalia, stated that Covid-19 pandemic would cause systemic, massive and structured impact in Indonesia. Therefore, investment realization in the second quarter of 2020 is predicted to go down. Bahlil said that this pandemic condition has pushed government to stop relying on the sectors previously considered as flagship. At this moment, the investment priority sectors are manufacture, downstream, and health sectors.
According to Bahlil’s explanation, in the next four to five months, BKPM will focus on drawing new investments especially in the health sector. He told that a meeting was already held with the Association of Medical and Laboratory Equipment (Gakeslab) and the Association of Indonesia Private Hospitals (ARSSI) discussing investment opportunity in the medical and laboratory equipment. In confronting this Covid-19 Pandemic, BKPM will implement a 3+1 strategy, which is basically to optimize the existing investment realization, solve the stalled/unfinished investments, conduct investment promotion, and build inward consolidation to prepare for post pandemic condition.
BKPM will not only focus on seizing foreign investment but also targeting domestic investment potential as well. As indicated in the first quarter data released by BKPM, Domestic Investment (PMDN) realization in that period was higher than that of Foreign Investment (PMA). This is a first. Therefore, BKPM will keep pushing PMDN to be maximized. As for PMA, it cannot be denied that there has been rescheduling in the implementation of investment realization due to Covid-19 pandemic.