Client: 2020 – Indonesian Investment Coordinating Board

The COVID 19 pandemic has affected investment in Indonesia, including investment in infrastructure. The pandemic has caused a slowdown and decreased investment realization, 

although not as much as contraction at the global level. To mitigate impact of COVID-19 to investment realization in Indonesia, Svara Institute (formerly Presisi Indonesia) was commissioned by Indonesian Investment Coordinating Board (Badan Koordinator Penanaman Modal/BKPM) to examine the impact of COVID-19 pandemic on the Indonesian economy, and particularly on investment in infrastructure. This study aims to analyse the impact of COVID-19 pandemic on the Indonesian economy, particularly on the investment in infrastructure sector. In addition, this study also aims to explore sectors that have experienced a decline and increase in demand during the pandemic. The study involved desk study and focus group discussion with key government institutions to provide insights and strategic recommendations. 

The study concludes that sectors which have potentials to grow during the pandemic are telecommunications, health services, food and beverage, and other supporting infrastructure. During the outbreak of COVID-19, reallocation and refocusing of infrastructure development projects are important. Also, Indonesia needs a comprehensive regional potential map covering the manufacturing industry, transportation, supporting infrastructure and other regional needs, as well as the conversion single-year contract (SYC) project package to multi-year contract (MYC). 

For further information regarding this study, please contact info@svara-institute.com.