Investment has continued to decline, as the figures represented a 4.9 percent quarter-to-quarter decline in the second quarter, which was recorded at Rp 176.3 trillion.

BKPM head Thomas Lembong attributed the decline to the dull investment policies introduced by relevant government organizations since 2017. “I think it has become really urgent to issue [investment friendly] policies and breakthroughs,” Lembong told a press conference on Tuesday.

He explained that investment inflows in the period between 2016 and 2017 were a result of regulatory reform in 2015, including the tax amnesty in 2016. He added that as of the first quarter, the country was still enjoying significant investment inflows.

“Regrettably, in 2017, there was no breakthrough in regulatory reform. It meant investment inflows were less optimal in the following year,” Lembong said.

He added that external factors were having a negative impact on the investment climate. “But we should not always blame external factors. We should admit – and apologize – that we lag in implementing the vision and guidance of the President,” Lembong added.

According to BKPM data, investment as of the third quarter stood at Rp 535.4 trillion. The BKPM has revised down this year's investment target to Rp 730 trillion, from Rp 765 trillion. (bbn)

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