Indonesia's BoP will Surplus in 1Q 2019, says BI
Governor of Bank Indonesia Perry Warjiyo at One Seminar in Jakarta - Photo by BI

JAKARTA (TheInsiderStories) – Governor of Bank Indonesia (BI) Perry Warjiyo invited global investors to immediately invest in Indonesia because of country’s bright economic outlook, said Warjiyo in the Indonesia Infrastructure Investment Forum (IIIF) 2019 on Tuesday (07/02).

Indonesia’s solid economic growth and macroeconomic stability are maintained amid the dynamics of the global economy, making the climate conducive to foreign investment. Investment Coordinating Board noted, the realization of investment in the first quarter reached Rp195.1 trillion (US$13,74 billion), up 5.3 percent compared to the same period last year, which was Rp185.3 trillion

Totally, domestic investment amounting to Rp87.2 trillion and Foreign Investment amounting to Rp107.9 trillion. The value of this first quarter investment realization reached 24.6 percent of the investment target in 2019 of Rp792.0 trillion.

According to Warjiyo, there are 4 potential sectors to invest in Indonesia, namely the manufacturing, tourism, fisheries, and infrastructure sectors.

In the manufacturing sector, the government will attract as many foreign investors as possible who focus on developing 3 Indonesian export commodities, namely automotive, textile and footwear.

During the first quarter of 2019, the manufacturing industry made the largest contribution to gross domestic product (GDP) at 20.07 percent. This number increased compared to last year’s achievement, which was 19.86 percent.

In addition, as indicated by the value of the Prompt Manufacturing Index (PMI) released by BI, the manufacturing performance was at 52.65 percent, higher than the fourth quarter of 2018 of 52.58 percent.

Meanwhile, investment opportunities for the tourism sector are focused on developing the priorities of Indonesia’s tourism development and branding goals, including several tourist destinations of national destinations, including Lake Toba, Mandalika, Labuan Bajo, Borobudur, Joglo Semar, Bali, Jakarta, Banyuwangi, Bromo and Islands Riau.

Furthermore, for the fisheries sector, open investment opportunities especially in Eastern Indonesia for the development of cultivation and supporting processing industries, given the large potential of Indonesia’s natural resources.

Then, investment opportunities in the national level infrastructure sector, refer to the list of national strategic projects issued by the Committee for the Acceleration of Priority Infrastructure Provision, consisting of 223 projects and 3 programs, some of which are in the preparation and construction stages.

The Committee said, 30 National Strategic Projects could be completed until the third quarter of 2019 with a total investment of Rp276.44 trillion. These projects consisted of dams, industrial estates, Special Economic Zones (SEZs), toll roads, railways, and satellites.

With this realization, accumulated since 2016, there are 92 projects that will be completed in the third quarter. In addition, the trend of project realization also continues to grow. From 20 projects in 2016, then 10 projects in 2017, to 31 projects in 2017 and 30 projects this year.

To support infrastructure projects, BI is involved in the National Financial Market Deepening Strategy as the implementation of structural reforms on infrastructure financing and continues to develop hedging instruments in the foreign exchange market to increase innovative financing in financing infrastructure development.

Warjiyo stressed IIIF 2019 was an event to promote investment opportunities in the 4 sectors and was attended by business people, investors, financial institutions, and business associations, especially in local countries.

The IIIF 2019 is a collaboration between the Indonesian London News Office, the London Investment Promotion Center (IIPC) London, the Bank Indonesia Foreign Representative Office London, and the Ministry of Tourism and the Ministry of Transportation.

US$1=Rp14.200

Written by Staff Editor, Email: theinsiderstories@gmail.com