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Investment not affected by JPMorgan issue: Top official
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Investment Coordinating Board (BKPM) chief Thomas Lembong (second right) prepares to take questions from journalists in a press briefing on Jan. 4. (JP/Grace D. Amianti)
T
he Investment Coordinating Board (BKPM) is convinced that foreign direct investments will keep pouring into Indonesia despite the government’s recent termination of partnership with JPMorgan after the investment bank came up with a report that purportedly created negative sentiment toward the country.
BKPM chief Thomas Lembong, a former investment banker, said the downgrade was only "short term" and would not create a bad precedent toward Indonesia in the long run.
“JPMorgan itself wrote that it was only for the short term, while Indonesia’s structural prospect was deemed pretty well,” he said on Wednesday.
(Read also: Senior economic minister supports decision on JP Morgan)
The government recently terminated all of its deals with the JPMorgan Chase Bank, NA, a subsidiary of New York-based JPMorgan Chase, after it published a research note that downgraded the country two notches from the “overweight” to “underweight” position, following the victory of Republican Party candidate Donald Trump in the US presidential election.
Thomas pointed out that foreign investors were generally confident toward Indonesia as an investment destination based on his recent discussions with them, particularly due to the government’s efforts to reform various aspects in the country’s economy.
What the government should do right now is to maintain positive economic fundamentals as Indonesia had the momentum to grow the economy amid tight competition against other countries to attract foreign investments, he added.
The BKPM aims to book Rp 678 trillion (US$50.17 billion) in investment this year, up 14 percent from last year’s target. (bbn)
