Credit: Coordinating Ministry for Economic Affairs.

JAKARTA (TheInsiderStories)Indonesia’s investment will grow above 7 percent growth in the second semester of this year as the presidential candidates nominations cleared uncertainties for investors, said Coordinating Minister for Economic Affairs Darmin Nasution on Friday (8/8)

Nasution said investors previously wait and see to pour investment toward the presidential election. However, the investors started to calm down after the presidential candidates’ declaration.

He saw that the two presidential candidates are well accepted by investors. “It should be fine because there are no candidates who bring out worries. The impact should be good. We optimize [investment] will revert to 7 percent growth,” he said, as quoted by Kontan.

Investment sector recorded at 5.58 percent in the second quarter of this year, significantly lower than almost 8 percent in the previous quarter. The record was far below 7.4 percent of government’s target in 2018.

According to Nasution, the government put effort to boost investment sector such as regulatory reform to accelerate business permit. One of them by developing online single submission (OSS) or one-door investment services.

“A lot of investors use OSS service surpassed our capacity,” he said.

He said the government can also continue with the plan that has been formulated to boost the economy. Among them is to maintain stabilization of the global economic turmoil by encouraging exports and reducing imports.

There are two candidates for 2019 presidential election. The ruling parties coalition support the incumbent President Joko Widodo accompanied by cleric Ma’ruf Amin. Meanwhile, the coalition parties back Prabowo Subianto and Sandiaga Uno.

Contrast to Darmin, Indonesia’s Investment Coordinating Board Head Thomas Trikasih Lembong earlier predicted that investment will slow down in the 2018 and 2019 due to the election cycle. In his opinion, the election result will affect government policy in the next five years so that many investors delay its investment.

Investment realisation recorded the lowest since 2010 at 16.18 percent growth (year on year/yoy) in the last 2014 presidential election, according to Investment Coordinating Board data.

Investment realisation also booked a negative growth of 12.28 percent in 2009 compared to the previous year due to 2009 election and 2008 financial crisis.

Email: fauzulmuna@theinsiderstories.com

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