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Likewise in the coal sector. On November 2021, the Investment Minister of the Republic of Indonesia, Bahlil Lahadalia, had succeeded to lock investing commitment of USD15 billion from Air Products and Chemical Inc. of United Arab Emirates.
This megaproject investment agreement is a form of the estabilishment of gasification facilities for a low rank coal conversion to produce value added chemical products, such methanol, dimethyl ether, and other chemical materials.
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Then, through its affiliated company PT HM Sampoerna Tbk, Philip Morris International in November 2021 also disbursed fund of USD166.1 million for investment in constructing facilities to produce heated tobacco. This investment is also based innovation and research.
The production facilities that is scheduled for operation in the fourth quarter of 2022 will meet demand of the domestic market and to Asia Pacific export.
Other investments that are based innovation and must be accelerated, according to Arsjad, is digital technology. Therefore, KADIN does supports this investment based on digital technology. In 2025, the digital economy growth is estimated to reach USD146 billion.
“KADIN views the economy digitalization has an important and strategic role in the future. Thus, Indonesia needs to prepare itself more aggressively. Moreover, there are many challenge that will be faced, such as technology matters, human resources, up to its regulation. Therefore, Indonesia needs to open a public-private partnership and create a condusive situation for investors and it owns capabilities to give a large impact to reach a realization of the Indonesia mission of Emas 2045,” Arsjad explained.
The Economist of Center of Reform on Economics (CORE) Indonesia, Yusuf Rendy, agreed the innovation-based investment is one priority that has to raise in the G20 and B20 in Indonesia in 2022.
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Some global corporations that since last year have commited to make investment in the downstream sector that owns intensive of innovation has become an important evidence in focusing into this kind investment.
“The innovation-based investment is important since it’s capable to accelerate the economy growth. We need to support this matter for making collaboration and research, for example between the government and private,” said Yusuf.
The downstream sector of industry is the main focus for the government in reaching investment, because it owns a large multiplier effect. Not only creating a new job, this investment also accelerates creation and the implementation of innovation and new technology that is capable to support a creation of sustainable and inclusive economy.
