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Govt raises investment target after promising Q1 results
Total investment rose 5.3 percent to Rp 195.1 trillion (US$13.7 billion) by the end of March.
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BKPM head Thomas Lembong (JP/Anton Hermansyah)
T
he Investment Coordinating Board (BKPM) expects total investments this year to increase by double digits following the positive trend recorded in the first quarter of this year.
Earlier this year, the Coordinating Investment Board (BKPM) set a modest 8.4 percent growth target in total investments to Rp 792.3 trillion (US$55.67 billion) this year after a slow performance in 2018, when investments grew by a mere 4.1 percent compared to 13.1 percent in 2017.
With the encouraging growth during the January to March period, however, BKPM chairman Thomas “Tom” Lembong said he was optimistic the annual growth would reach as high as 13 percent at the end of this year
Total investment rose 5.3 percent to Rp 195.1 trillion by the end of March this year from Rp 185.3 trillion in the same period of last year.
Foreign investments, which made up over 55 percent of the figure, declined by 0.9 percent yoy to Rp 107.9 trillion, but this was in contrast to the 11.6 percent slump in the previous quarter.
“Thankfully, we have seen clear signs of recovery in investment trends in the first quarter [...] after investment flows dropped badly in 2018 in Indonesia and worldwide,” Tom told reporters on Tuesday. Globally investment flows dropped 20 percent last year according to the United Nations Conference on Trade and Development (UNCTAD).
Tom said that positive sentiment had improved globally amid growing optimism that the United States and China could settle their trade conflicts and the US Federal Reserve’s unprecedented dovish outlook.
