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FDI in Indonesia continues to grow despite Israel-related boycott, says minister
Amid a boycott on goods perceived to be from companies supporting Israel, Investment Minister Bahlil Lahadalia assures that investment in Indonesia will continue to grow as planned.
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Investment Minister Bahlil Lahadalia presents the latest data on foreign and domestic direct investment at a press briefing in Jakarta on Oct. 20, 2023. The minister, who also heads the Indonesia Investment Coordinating Board, was upbeat that investment in Indonesia would continue to grow as planned amid a boycott on goods coming from companies thought to support Israel. (YouTube/KementerianInvestasiBKPM/-)
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espite a boycott on goods from companies perceived to support Israel endorsed by the Indonesian Ulema Council (MUI), Investment Minister Bahlil Lahadalia assures that investment in Indonesia will continue to grow as planned.
"Until today, our investment target is still in progress, because the target for 2023 is Rp 1,400 trillion [US$90.5 billion], and Insya Allah [God willing], hopefully it can be achieved," Bahlil said on Tuesday at the Presidential Palace complex, as quoted by Antara news agency.
However, Bahlil, who is also the head of the Investment Coordinating Board (BKPM), was unable to accurately assess the impact of the boycott on Israeli-affiliated products on the investment climate in Indonesia.
When asked about the influence of the boycott on investment in Indonesia, he responded, "I need to have more data on the developments [of the boycott]."
Bahlil is optimistic about the capital inflow trend, highlighting supporting indicators such as the strengthening rupiah exchange rate and the declining yields on government bonds (SBN). "If our exchange rate stabilizes at Rp 15,000 [97 US cents], it’s a good figure. It will spur investors’ confidence in our country."
As of Nov. 22, the year-to-date rupiah exchange rate had appreciated by 1.88 percent against the greenback.
The rupiah’s strength stood out as various currencies face pressure globally, largely due to the strengthened US dollar index resulting from the United States Federal Reserve's significant interest rate hike.
