INVESTMENT IS believed to significantly contribute to Indonesia’s economic recovery during and after the Covid-19 pandemic. There is a strong need for informative, comprehensive studies on investment opportunities across the country to encourage more investment in the current situation, particularly in strategic projects.
It led to the Strategic Project Map of Investment Opportunities initiative by the Ministry of Investment/BKPM. Nurul Ichwan, Deputy Chairman for Investment Planning, spoke on how this strategic project map should help potential investors to invest in Indonesia.
What is the Strategic Project Map of Investment Opportunities?
The Strategic Project Map of Investment Opportunities refers to pre-feasibility studies (Pre-FS) carried out by the Ministry of Investment/ BKPM to compile information on investment opportunities in strategic projects in Indonesia.
The projects are selected based on the government’s policy directions. These include Strategic Priority Projects/Major Projects, National Strategic Projects (PSN), and other strategic projects proposed by the local government.
The Pre-FS for these projects covers various analyses, including legal analysis, technical analysis, market research, economic and financial feasibility, social and environmental impacts, business model schemes, and support from the government and stakeholders.
Furthermore, the conducted Pre-FS will be presented in Pre-FS documents, info memos (infographics), and spatial-based information. We believe comprehensive information on investment projects deriving from the Pre-FS could help convince potential investors when deciding to invest in Indonesia.
What are the purposes of making the Strategic Project Map of Investment Opportunities?
The making of this Strategic Project Map of Investment Opportunities serves several purposes. First, it provides comprehensive and detailed information for investors and related stakeholders regarding the feasibility of a project.
Second, it analyzes the investment feasibility of a project based on sectors that the government will encourage and develop in the next five years to support economic equity, taking into account the competitive and comparative advantages of each region/province.
Thirdly, it helps relevant ministries/agencies formulate policy recommendations and special incentives related to the development of strategic priority investment projects in Indonesia.
Last but not least, it prepares spatial-based information (Geographical Information System/ GIS) about projects ready to be offered to investors and other related information integrated with the information system already available at BKPM.
What sectors are the focus of the Strategic Project Map of Investment Opportunities?
There are four sectors that have been the focus of the map for 2020 and 2021. They are Tourism, Development of Economic Zone, Industries Integrated to the Economic Zone, and Infrastructure Supporting the Economic Zone.
For the Development of Economic Zone, if a region wants to develop either an Industrial Estate or a Special Economic Zone, we will do a Pre-FS for the area to be developed as either an Industrial Estate or SEZ. As for the Infrastructure Supporting the Economic Zone, a port might want further warehouse or cold storage infrastructure development. We then try to accommodate these requests and look into their potential through conducting a Pre-FS.