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E.Tanuwidjaja, Economist at UOB Group, reviewed the recent figures of domestic and foreign direct investment in Indonesia.

Key Quotes

“Investment realization of Domestic Direct Investment (DDI) and Foreign Direct Investment (FDI) accelerated in 3Q19, growing by 18.4% y/y (an equivalent of IDR 205.7tn) as compared to last quarter growth of 13.7% y/y (IDR 200.5tn). This performance reflects confidence among investors in the Indonesian economy following the election victory of the incumbent President Joko Widodo”.

“Indonesian Investment Coordinating Board – BKPM – said that it is possible for 2019 national investment realization target to be achieved by the fourth quarter as political conditions are showing positive signal due to the peaceful conduct of the April 2019 General Election. BKPM noted that there is a growth in investment realization outside Java from IDR 75.8tn in 3Q18 to IDR 93.6tn in 3Q19. This increasing growth of investment outside Java reflects the government intention in achieving a balanced growth for development in the region of Indonesia”.

“Going forward, we are cautiously optimistic that Indonesia will be able to attract much-needed longer-term investment into the country, given the recent positive developments in maintaining low and stable inflation, and growing FX reserves”.