BKPM Chief Says European Union Helps Indonesia Avoid Middle-Income Trap

Investment Coordinating Board (BKPM) Head Thomas Lembong has expressed appreciation for the bilateral relationship between the European Union and Indonesia. According to him, the contributions of European business actors and the EU have fostered economic growth in Indonesia. One such contribution is in avoiding the middle-income trap. “This is clearly evident from the active role of European business actors who participate in providing input regarding deregulation packages, thus helping the Indonesian government’s efforts to escape the middle-income trap,” he stated at the BKPM building in South Jakarta on Thursday (8/2). Thomas also explained that the government is still striving to accelerate the implementation of deregulation packages. This includes, he said, receiving input from the business community regarding policies in various business sectors. “President Jokowi’s government will continue to undertake various deregulation measures to provide ease for the business world. Various economic reform programmes carried out over the past three years have shown results and have been recognised by a number of international institutions and rating agencies,” he explained. To help accelerate and improve Indonesia’s economic and investment climate, he requested that human resource development become a means of collaboration between the government and business actors. He believes business actors have an important role in developing human resources in Indonesia. Finally, BKPM is optimistic that the 2018 investment realisation target of Rp 765 trillion can be achieved if deregulation proceeds well.