Mandiri Investment Forum

Macro Day

Wednesday, 05 February 2020

The five years ahead are crucial for Indonesia as President Jokowi has been re-elected. New policies and programs will certainly be implemented by the new administration. However, as it is Jokowi’s 2nd term of presidency, we may presume that policies and programs going forward might be and extension of his 1st. Yet, many of us question the detailed policies and programs of Jokowi’s 2019-2024 administration. Therefore, we believe that MIF 2020 is a strategic opportunity for both the government and other stakeholders to communicate and understand what the coming policies and programs are.

As we all know, Indonesia still faces structural economic problems, i.e. low manufacturing proportions in export and GDP (Gross Domestic Products). Indonesia is also highly dependent on the commodity sector (i.e., palm oil and coal) and low labor productivity. Consequently, the country suffers from current account deficit as our export is largely determined by the commodity prices.

Foreign direct investment is key to transform speedily the country’s economy into more industrialized as well as to boost export. FDI is important not only to enlarge productive capacity of manufacturing industry, but also to advance technological capacity and stimulate human capital advancement. However, a country will only attract FDI if several requirements are met, such as macroeconomic and political stability, adequate infrastructure, good bureaucratic quality, legal certainty, availability of skilled manpower and flexible labor market.

The 2020 MIF will emphasize on the governments’ strategy to attract more foreign direct investments to Indonesia. As our contribution to resolve the existing economic challenges, Mandiri Investment Forum in 2020 is designed as a venue for investors and policy makers to identify the main obstacles of investing in Indonesia as well as to formulate strategies to resolve these obstacles. Topics that will be discussed include fiscal incentives provided by the government to attract more direct investment, monetary policies to boost economic growth, and strategies to improve investment climate.

Further, the 2020 MIF will also touch upon perspectives from both global and domestic companies, as well as existing and potential investors. We hope this forum enables us to formulate an effective strategy to attract more foreign direct investment to Indonesia, which can subsequently transform the country into an industrialized economy.

 

Macro Day

Wednesday, 05 February 2020