Kemenhub Ready for Relaxation Rules For Investment From India

Jakarta -The Ministry of Transportation said it was ready to ease the rules to attract foreign investment, one from India. Foreign investment is needed to meet the funding needs of projects that are not sufficiently supported by the state budget.

Transportation Minister Budi Karya Sumadi said the transportation infrastructure projects offered to Indian investors include airport and port projects. In addition, Kemenhub also encourages the opening of direct flights connecting cities in India with cities in Indonesia.

He explained that investment opportunities for foreign investors in the airport sector is estimated to reach Rp20 trillion, while in the port sector of Rp10 trillion. Budi Karya said the presence of Indian businessmen delegation to Indonesia became an indication of Indonesia’s interest in foreign investors.

“Therefore, we would like to have an investment service improvement to make them [investors] easier and firmed [to invest in Indonesia],” said Minister of Transportation after the India Infrastructure Forum (FIII) in Jakarta on Monday (19/3/2018).

In general, Kemenhub is targeting the elimination of 8 licensing types this year following the elimination of 11 licensing types by 2017. This year, Kemenhub will also delegate 11 types of licenses after last year delegated 13 licenses to the Investment Coordinating Board (BKPM).

On the other hand, Kemenhub offers a number of infrastructure development projects to the Indian delegation, including the development of Kuala Namu Airport, Raden Inten Airport, Juwata Airport, and Komodo Airport. Furthermore, the Port of Kuala Tanjung and the Port of Bitung.

In the FIII event, the Indian delegation comprises 30 representatives from a number of companies in the infrastructure sector, including ports, electricity, airports, water resources management, sick rums, and technology.

Indian Ambassador to Indoneaia Pradeep Kumar Rawat underlines India’s growing economic growth and Indian investment success stories abroad. He called for India and Indonesia to make greater synergies in the industrial sector, especially in the infrastructure sector.

The ambassador said India and Indonesia had a relationship that existed since the 7th century, in the era of Sriwijaya Kingdom. Both countries think very potential to step into the cooperation phase of infrastructure that is being boosted each country.

Pradeep said, India’s relatively high economic growth, which is 7.2% in 2017 became one of the drivers of Bollywood Affairs entrepreneur is heavily immersed capital in many countries.

“India and Indonesia are already working together in many sectors, now need greater synergy in the infrastructure sector,” he explained.

In particular, he considered investing in the infrastructure sector to require a longer payback period. Therefore, investors will be interested to immerse capital as long as there is certainty of regulation and conducive business climate.

In a Business note, India’s investment realization last year shot off. According to data from the Investment Coordinating Board (BKPM), India’s investment realization was US $ 286.6 million, up 4.26 times compared to 2016.

In addition, India is also one of Indonesia’s main trading partners. Ministry of Commerce data shows, India is the fourth largest export destination of US $ 13.94 billion in 2017. That number increased 40% compared to 2016 position year-on-year. On the other hand, imports from India also grew 33% to US $ 3.78 billion.