Airlangga Calls The Drop In Rupiah Does Not Affect Foreign Investments To RI

Coordinating Minister for the Economy Airlangga Hartarto (Photo: Antara)

Coordinating Minister for Economic Affairs Airlangga Hartarto said the increase in foreign investment was caused by indicators of Indonesia's maintained macro stability, thus making investors feel safe to invest in the country.

According to Airlangga, the depreciation of the rupiah against the United States (US) dollar has no significant effect on foreign interest in investing in Indonesia.

"Yes, if it's all industrial, long term view. So if it's incidents that fluctuate (exchange rates) it doesn't affect the long term view," Airlangga told the media crew, quoted Tuesday, July 30.

Airlangga said the government also provides easy access for entrepreneurs to attract investors to invest, such as the development of special economic zones with fiscal and non-fiscal facilities, which encourages long-term investment.

In addition, Airlangga explained that the long-term views in question are economic growth, inflation, and the availability of skilled workers.

"Long term view is certainly related to investment, economic growth, inflation, then skill availability, as well as areas and licensing," he said.

Previously, the Minister of Investment/Head of the Investment Coordinating Board (BKPM) revealed that the global economic condition is currently shaky. In fact, he said, there are already 95 countries that have become International Monetary Fund (IMF) patients.

"We know that the global economy is still in an alarming condition, there are even 95 countries that have now become IMF patients," Bahlil said at the Investment Realization Press Conference in Quarter II and Semester I 2024, at the Ministry of Investment office, Jakarta, Monday, July 28.

Even though the economic condition is not fine, Bahlil is grateful that foreign investors still believe in investing in Indonesia. This can be seen from the flow of foreign investment into Indonesia which recorded a positive contribution.

In the second quarter of 2024, continued Bahlil, foreign investment (PMA) reached IDR 217.3 trillion or 50.7 percent of the total incoming investment of IDR 428.4 trillion. This figure is up 6.3 percent from the previous quarter and up 16.6 percent from the second quarter of 2023.

"Behind the global economic dissipation, we remain grateful, that the public, globally still trusts our country as one of the goals of an investment country," he explained.

To note, the Ministry of Investment/BKPM noted that the realization of investment in the first meter of 2024 reached IDR 829.9 trillion. This figure increased 22.3 percent compared to the same period the previous year.