Investment to drop to nine percent: BKPM
Aditya Suharmoko, The Jakarta Post, Jakarta | Sat, 05/02/2009 7:06 PM
Realized investment in Indonesia will drop to 9 percent this year, from the previous estimate of between 10.7 percent and 11.2 percent, on the back of the global economic slowdown, the Investment Coordinating Board (BKPM) says.
BKPM head M. Lutfi said Saturday that based on April's investment data, Indonesia was now feeling the impact of the global crisis in terms of realized investment.
"We thought we could survive, but, seeing April's data, we have been hit [by the crisis]," he told reporters, adding that the crisis would likely cause investment to decrease in 2011 or 2012 as investors chose not to make any business commitments during the crisis.
Lutfi added the telecommunications sector would be the most lucrative sector this year, as internet users in Indonesia have tripled each year in the past three years in Java and Sumatra.
"I still think Indonesia has a lot of potential [to attract investment]. We just need to tweak it a little," he said.
