Jakarta: Indonesia will require Rp6,000-trillion investment in 2022 to drive economic growth, according to National Development Planning Minister Suharso Monoarfa.
"Investment of Rp5,891.4 trillion to Rp5,931.8 trillion will be required, and also the role of non-governmental parties and private investment to stimulate investment and drive idle sectors," Monoarfa noted during a virtual coordination meeting on central development here on Thursday.
Some 83 percent of the investment, reaching Rp4,948.9 trillion to Rp4,857.7 trillion, is expected to come from the private sector, while investment from state-run enterprises will reach Rp503.1 trillion-Rp577 trillion, and the government, Rp439.4 trillion-Rp497 trillion.
Monoarfa has targeted the incremental capital-output ratio (ICOR) in 2022 to decline to 6.24, from the 2021 projection at 8.16, so that investment can efficiently boost economic growth.
According to the minister, the investment will target major projects set in the Government's Working Plan (RKP) 2022.
"The major projects are five smelters, comprising two smelters in South Halmahera, North Maluku; one smelter in Kotabaru, South Kalimantan; one smelter in Ketapang, West Kalimantan; and one smelter in West Waringin, Central Kalimantan, are targeted to become operational in 2022," Monoarfa stated.
Total funding for the development of priority industrial parks will reach Rp210.722 trillion, of which 3.64 percent will come from the state budget, 89.49 percent from the private sector, 6.83 percent from public-private partnership (PPP), and 0.04 percent from foreign loan and grant (PHLN).
Total funding for investment in smelter development is expected to reach Rp346.35 trillion, of which 93.3 percent will come from the private sector and 6.7 percent from state enterprises.
"Funding for the development of renewable energy and energy conservation will be sourced from the state budget, state enterprises, and private sector with clear role sharing," the minister explained.