JAKARTA: Natural resources and food-based industries are potentially to attract the largest investment potentials in 2012. The government has to benefit it by supporting processing industry and strengthening infrastructure.
Chairperson of Indonesia’s Chamber of Commerce Suryo Bambang Sulisto said that the government needs to focus on developing the natural resources-based downstream industry, mainly those focusing in mineral output, as what has been done to agriculture commodities.
“Mineral-based downstream industry will grow rapidly if the government sets out a policy to retain export and give incentive for developing the downstream industry,” he said over the weekend.
Moreover, he predicted that food industry may attract more investment this year in line with high domestic consumption of processed food.
However, Suryo added that industry growth in 2012 will face same classic issues concerning infrastructure, bureaucracy and legal.
Law on Land Acquisition for Public Interest is believed to solve the infrastructure development problem that may hamper industry growth. However, other policies and incentives are needed to attract more investors.
Chairperson of Indonesian Entrepreneurs Association (Apindo) Sofjan Wanandi asked the government to exploit any mechanisms allowed for protecting domestic market under the free trade arrangement.
Protecting local market is the most effective way to avoid pressures from the influx of imported goods on domestic competitiveness if global economic crisis continues this year.
Infrastructure projects
Chairperson of National Contractors Association (Gapensi) Soeharsojo is optimistic that a number of infrastructure projects in 2012 will increase market capitalization of construction sector by at least 10% to IDR270 trillion from IDR240 trillion in 2011.
“2012 can be seen as the infrastructure year because infrastructure plans made in 2011 will be implemented this year. Moreover, Land Law has taken effective. Investors will be more attracted and construction sector will grow by more than 10%.”
At the same time, national shipping industry will enlarge loading space for ships by optimizing the fiscal facility from the government this year to meet the target of 1 billion ton of shipments in the next 2 years.
Ketua Umum Indonesian National Shipowners' Association (INSA) Carmelita Hartoto mengatakan pertumbuhan muatan laut baik domestik maupun ekspor impor berpotensi menembus rekor pada 2012.
Chairperson of Indonesian National Ship Owners' Association (INSA) Carmelita Hartoto said that the growth of both domestic and export-import shipments may record a new high in 2012. Thus, the capacity of loading space for national commercial ships must be enlarged. (T04/NOM)
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