Good Economic Foundation, Bahlil Optimistic That Indonesia Is Still A World Investment Destination Country In 2023

Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia. (Photo: Doc. Antara/Ministry of Investment)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia is optimistic that Indonesia will still be the world's investment destination in 2023. According to Bahlil, this belief is due to Indonesia's excellent economic foundation.

"When asked whether Indonesia is still optimistic that in the future Indonesia will become one of the investment destination countries? Very optimistic," he said in the online talk show "Optimism for a Stronger Indonesia," quoted by Antara, Wednesday, August 10.

Indonesia's economic growth reached 5.44 percent in the second quarter of 2022 (yoy) with the inflation rate maintained at 4.35 percent in June 2022 (yoy) amid global uncertainty that plagued the world.

This achievement makes Indonesia one of the countries with the best macroeconomic foundations in the world. Especially when compared to other G20 member countries.

"Our economic foundation is based on our consumption growth which is around 5.1 percent, investment grows 3.1 percent, and exports and imports are good. Where would you like to get growth like this?" he said.

Bahlil's optimism is also based on President Jokowi's direction that the investment target in 2023 must be higher than the 2022 target of IDR 1,200 trillion.

The higher investment target, although he admits that the figure is not final, is needed to fill the declining financing space because the APBN deficit must be kept below 3 percent.

"In order to keep our growth above 5 percent, this instrument is an investment. So I am sure that future investment will be above Rp. 1,200 trillion," he added.

Bahlil also admitted that he was still optimistic that the investment realization target in 2022 would reach the target of Rp. 1,200 trillion.

The reason is, until the first semester of 2022, the realization of investment has reached Rp. 584.6 trillion or reached 58.4 percent of the existing target.

He also said that the flow of investment realization will usually continue to increase until the end of the year to be able to pursue the company's targets.

"Usually, the investment flow cycle is the smallest in the first quarter, then the third and fourth quarters increase because people are chasing targets. With the data we have, God willing, it will be achieved," said Bahlil.