Bahlil Worried About Israel-Israeli Conflict: Can Prevent Investment In Indonesia

Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia. (Photo: Mery Handayani/VOI)

JAKARTA - Investment Minister/Head of BKPM Bahlil Lahadalia admitted that he was worried about the escalation of conflicts that occurred in the Middle East, especially the Israeli-Iran conflict.

Bahlil said that the heating up of the Israeli-Iran conflict could potentially hamper the flow of foreign investment into Indonesia. Because, investors will choose to postpone their investment plan in Indonesia.

"The thing I'm most worried about is the Middle East issue," Bahlil said at a press conference at the Ministry of Investment Office, Jakarta, Monday, April 29.

For your information, the market responded to the heated Israeli-Iran conflict. This condition caused the United States (US) dollar exchange rate to soar high against the currencies of various countries, including Indonesia.

Bahlil said the strengthening of the US dollar exchange rate, and the surge in world oil prices could cause production costs to also increase.

Therefore, he said, this condition will make investors postpone their investment plans.

"What we are worried about is the Middle East issue, because it has a tremendous impact, especially oil prices, and will definitely have an impact on the rupiah exchange rate, and have an impact on investment, because the production costs will definitely be much higher," he said.

He explained that the increase in production costs would also increase the price of the product. However, for entrepreneurs, it is not easy to increase the selling price of products.

"As long as the selling price is still worth it, consumers are still buying what doesn't really matter, but what becomes influential when interest rates rise, credit interest increases, selling prices don't go up, that's what happens to entrepreneurs," he explained.