International Agreement Paves The Way For Investment In Indonesia

MI/SUSANTO

International Agreement Paves The Way For Investment In Indonesia

Monday, 16 Dec 2024

Indonesia's leadership during the G-20 Presidency in 2022 and its chairmanship of ASEAN in 2023 serves as a significant asset for fostering international investment agreements. These two international events have enhanced Indonesia's visibility among numerous countries. Therefore, it is crucial to leverage this opportunity to secure investment agreements from various nations.

This was articulated by Tirta Nugraha Mursitama, Deputy for Investment Cooperation at the Ministry of Investment and the Investment Coordinating Board (BKPM), during the Executive Forum titled "Dissemination of International Cooperation in Investment," organized by Media Indonesia in Jakarta on Friday, December 13.

Tirta emphasized that the government aims for international investment agreements to pave the way for global investors and business actors to operate in Indonesia. "We want the function of international investment to facilitate investors and entrepreneurs. When they invest in our country, they should feel secure and comfortable," he stated.

He further explained that there are two key elements involved: the first being protection and guarantees, ensuring that investments are well-managed, and the second being the commercial aspect, which opens up a vast market.

Currently, Indonesia has established 22 bilateral investment treaties (BITs) and 13 treaties with investment provisions (TIPs) with various countries and regions. In addition to these two types of agreements, there are other avenues, such as investment-related instruments, which may or may not be binding.

Tirta noted that international investment agreements from diverse channels are essential as they can facilitate pathways and promote the ongoing developments in Indonesia. This information serves as a starting point for countries and potential investors to consider investing their capital in Indonesia.