BPS Sulbar with the Fiscal Economic Forum Meet Acting Governor to Discuss Investment Acceleration

Mamuju, 4 November 2023 – BPS West Sulawesi together with the Fiscal Economic Communication Forum consisting of Bank Indonesia, DJPb, Bappeda and Diskominfo West Sulawesi met Acting. Governor of West Sulawesi, Prof. Zudan. The meeting aims to discuss investment acceleration strategies that can support sustainable regional economic development in West Sulawesi province.

The hearing which took place on November 4 2023 at the West Sulawesi Governor's Rujab reflected the regional government's commitment to creating a conducive investment climate and encouraging sustainable economic growth in West Sulawesi.

During the meeting, the Acting Governor of West Sulawesi, Zudan welcomed the participation and contribution of the Fiscal Economic Communication Forum in efforts to encourage investment in the region. He emphasized the importance of collaboration between local governments, the private sector and other stakeholders to create a good investment climate.

Head of BPS West Sulawesi, Tina Wahyufitri, said that the investment component in West Sulawesi experienced improved growth of 1.00 percent (yoy), an increase from the previous quarter which contracted 0.06 percent (yoy).

"The growth rate of investment in West Sulawesi still tends to be lower than the growth of other components, such as household consumption and exports," said Tina.

Furthermore, the Head of Bank Indonesia West Sulawesi Representative, Gunawan Prabowo, added that Domestic Investment (PMDN) is the largest investment component with a share of 56.17 percent and a value of IDR 390.15 billion in the third quarter of 2023.

Meanwhile, Foreign Direct Investment (PMA) only had a share of 43.83 percent, with a value of US$19.15 million. The Food Crops, Plantations and Livestock Sector and the Food Industry Sector are the sectors that dominate the FDI value in West Sulawesi.

Based on the West Sulawesi Incremental Capital Output Ratio (ICOR) Index in recent years, it shows that investment performance in West Sulawesi is still classified as inefficient.

"There are several obstacles to the flow of investment in West Sulawesi, inadequate supporting infrastructure facilities, limited data regarding natural resource potential, as well as applicable regulations and legal certainty," explained Gunawan.

He also mentioned several policies that could be implemented by the government, namely encouraging investment promotion for both PMA and PMDN, providing various large-scale and medium-scale IPROs for investment promotion, strengthening capacity building, especially for relevant OPD human resources so that they have expertise in preparing various IPROs. , and establishing an investment acceleration forum as a means of increasing coordination and collaboration between Regional Government and BUMN/private sector.

At the end of the meeting, the Acting Governor, Zudan also expressed his appreciation to the Fiscal Economic Communication Forum for their active role in supporting the vision of sustainable economic development in West Sulawesi. This discussion is the first step in formulating a joint strategy that will facilitate economic growth, create jobs and improve the welfare of local communities.

Chair of the West Sulawesi Fiscal Economic Communication Forum, Tina Wahyufitri, expressed her commitment to continue working with regional governments in accelerating investment that supports sustainable economic development. He also stated that this Forum is ready to contribute in designing policies that benefit all parties.

This meeting reflects the collaborative spirit between the public and private sectors in efforts to achieve sustainable and inclusive regional economic development in West Sulawesi. In the future, it is hoped that there will be concrete results in the form of investment programs that support the shared vision for sustainable economic growth in West Sulawesi.