Illustrative image (Photo: adb.org)This second of three subprograms of the Competitiveness,Industrial Modernisation, and Trade Acceleration Program (CITA) builds on thesuccess of the first subprogram approved in October 2021.
ADB Country Director for Indonesia Jiro Tominaga said thatto achieve high-income status by 2045, the government anticipates thatIndonesia's gross domestic product must grow by at least 6.0% annually,significantly above the pre-pandemic average of 5.3%.
Indonesia is making good progress in its recovery from theCOVID-19 pandemic, but ongoing structural reforms are needed to boost itsgrowth potential by stimulating investment, job creation, improved businessclimate, and trade, he stressed.
According to the ADB, the Indonesian Government hasundertaken a range of actions to improve the investment climate, as agreedunder subprogram 2. Business license approvals have been made quicker throughan update of the online single-submission, risk-based approach which integratesnational, subnational, and ministries’ processes.
In addition, to attract more investment and supportIndonesia’s transition to a low-carbon economy, the government deepenedsubprogram 1 reforms and, among others, promoted investments in energyefficiency and created an enabling environment for more green investments.Foreign direct investment for the manufacturing of batteries for electricvehicles was also approved, including the signing of five high-value contracts,from which at least 49,000 jobs are expected to be created./.
VNA
