Wait And See Entrepreneurs Ahead Of The Election, Ogah Jor-Joran Plants Investment

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo found that domestic investment tends to be restrained and has not shown significant signs of expansion.

Perry suspects that this condition occurred because business actors chose to be conservative ahead of the five-year democratic event.

"Investment patterns in election years are usually waiting and see," he told reporters in Jakarta, Thursday, May 25.

In particular, Perry highlighted investment activities in the construction and real estate sector which were considered still sloping in the first quarter of 2023.

According to him, this sector tends to be difficult to get post-pandemic growth momentum.

Investasi sektor bangunan masih rendah di triwulan pertama. Berbeda dengan sektor pertambangan, industri, dan jasa yang kredit investasinya naik. Semoga ini tidak memberi tekanan yang kuat terhadap pengusaha atau korporasi untuk berinvestasi," tutur dia.

As a result, the central bank has begun to take a conservative stance on achieving growth targets even though it is still in the range of 4.5 percent to 5.3 percent year on year (yoy) this year.

"We have to see again how the investment pattern is so that we don't put the sentence (economic growth) into it," he said.

To note, the target for achieving economic growth this year is still on track with a score of 5.03 percent in the first quarter of 2023.