Wahyu Dwi Anggoro
IDXChannel - The Asian Development Bank (ADB) has approved a USD500 million loan on 22 September to support Indonesia’s development agenda and reform priorities in creating an enabling environment for investments, easing trade barriers, and upscaling enterprises.
This second of three subprograms of the Competitiveness, Industrial Modernization, and Trade Acceleration Program (CITA) builds on the success of the first subprogram approved in October 2021.
The Government of Indonesia has undertaken a range of actions to improve the investment climate. Business license approvals have been made quicker through an update of the online single-submission, risk-based approach which integrates national, subnational, and ministries’ processes.
In addition, to attract more investment and support Indonesia’s transition to a low-carbon economy, the government among others promoted investments in energy efficiency and created an enabling environment for more green investments. Foreign direct investment for the manufacturing of batteries for electric vehicles was also approved, including the signing of five high-value contracts, from which at least 49,000 jobs are expected to be created.
To ease trade barriers, the government implemented three new systems under the National Logistics Ecosystem Masterplan (2020–2024) to digitally connect the public and private sectors in the logistics chain, including rolling out an online payment platform for logistics services with six banks implementing a single operating system for port operators. The national single window was enhanced and the competitiveness of government procurement was strengthened.
