Jakarta (ANTARA) - Deputy Minister of Investment and Downstream\nIndustries\/Deputy Head of the Investment Coordinating Board (BKPM),\nTodotua Pasaribu, stated that sectors based on natural resources (SDA)\nand green energy are the most sought-after for investment in\nIndonesia.<\/p>\n
\u201cThe most sought-after sectors are undoubtedly those related to our\nresource strengths,\u201d he said when met in Jakarta on Thursday.<\/p>\n
Todotua made these remarks in response to questions regarding the\ndynamics of the United States\u2019 (US) tariff policies and investment\nsector interests in Indonesia.<\/p>\n
He elaborated that the mineral sector, including oil and gas,\nagriculture, forestry, and maritime industries, are major attractions\nbecause Indonesia possesses diverse and abundant natural resource\nreserves.<\/p>\n
Furthermore, the downstream processing of these sectors is also a\nsignificant contributor to investment, as it directly involves the\nprocessing of natural resources within the country to increase added\nvalue.<\/p>\n
According to him, the growth of investment in the industrialization\nand manufacturing sectors also drives increased investment in the\nlogistics sector, as the need for supply chains increases.<\/p>\n
\u201cIf there is growth in the industrialization and manufacturing\nsectors, then logistics will also undoubtedly grow,\u201d he said.<\/p>\n
The green energy sector is in demand because Indonesia has a large\npotential for utilization, reaching around 3,700 gigawatts, ranging from\nsolar to geothermal energy.<\/p>\n
However, he reminded that the main challenge is to ensure that the\ninvestment climate remains conducive, competitive, and sustainable.<\/p>\n
According to him, Indonesia must be able to guarantee that the cost\nof processing resources domestically is not more expensive than in other\ncountries to remain attractive to investors.<\/p>\n
\u201cBecause we must ensure that the processing of natural resources here\nis not more expensive than processing in other countries. This is a\nmajor challenge for us,\u201d he said.<\/p>\n
On Thursday (February 19), the Indonesian and US governments\nofficially signed a reciprocal tariff agreement. In this agreement,\n1,819 tariff lines for Indonesian products receive facilities with\nimport duties of up to zero percent.<\/p>\n
The products covered include palm oil, coffee, cocoa, spices, rubber,\nelectronic components including semiconductors, and aircraft\ncomponents.<\/p>\n
In addition, the two countries also agreed to eliminate import duties\nof zero percent for Indonesian textile and garment products through a\nspecific quota scheme.<\/p>\n
However, a day after the agreement, on Friday (February 20), the US\nSupreme Court ruled that President Trump did not have the authority to\nimpose global tariffs based on the International Emergency Economic\nPowers Act (IEEPA).<\/p>\n
The ruling caused the US to begin implementing a temporary global\ntariff of 10 percent, with plans for the White House to increase it to\n15 percent.<\/p>\n
Before Congress, Trump stated that almost all countries and companies\nwant to maintain the tariff agreement that was made before the US\nSupreme Court ruling.<\/p>\n
Meanwhile, the Indonesian Coordinating Ministry for Economic Affairs\nensured that there would be further discussions with the US after the\nSupreme Court\u2019s decision, which canceled Trump\u2019s reciprocal tariff\npolicy.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bkpm-natural-resource-and-green-energy-sectors-most-attractive-to-investors-1772104814", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }