Indef Economists Call Investment Targets Rp1,200 Trillions Hard To Achieve

Executive Director of Indef Tauhid Ahmad. (Photo: Doc. Antara)

JAKARTA - Executive Director of Indef Tauhid Ahmad said this year's investment achievement was quite fantastic.

However, Tauhid considered it a bit difficult to achieve the investment target by the end of the year. The government set an investment target for 2022 of IDR 1,200 trillion.

"The trend is a bit heavy for IDR 1,200 trillion, it was achieved at the end of the year. The weight is the shift in the uncertainty attack in Quarter IV. So the challenge is in investment," said Tauhid, Friday, October 28.

Tauhid said the world was slowing down, markets or markets were also falling.

Therefore, Tauhid said investors would also look for safe haven, a better investment.

"Including investors from America or other countries, if conditions are not good, it will switch to the financial sector for now," added Tauhid.

Although a bit difficult to achieve, the good news is that BKPM recorded that the contribution of investment realization of PMA jumped 44.5 percent compared to the same period in 2021, which was IDR 479.3 trillion (53.7 percent). This is because Indonesia has healthy and attractive economic fundamentals for investors. Not far from the Target

A different view was conveyed by Bank Permata economist Josua Pardede.

He predicts that the realization of the government's investment target will not deviate far from the target.

"So, until the end of this year, investment realization is expected to approach the government's investment target," said Joshua.

According to him, investment realization in 3Q22 recorded a growth of 42.1 percent on an annual basis or year on year (yoy) with Foreign Investment (PMA) growing 63.6 percent yoy and Domestic Investment (PMDN) grew 22.5 percent yoy.

Josua explained, from the PMDN side, economic sectors that recorded high investment values include transportation, warehousing, housing, industrial estates as well as the food and beverage industry.

Meanwhile, in terms of foreign investors, continued Josua, the sector in demand includes the basic metal industry (dihilization of nickel), the electricity-gas-water sector, and the mining sector.

"From the 2022 target, the realization until the third quarter of 2022 has reached Rp892.4 trillion or 74.4 percent of the target of Rp1,200 trillion," he said. The Ministry of Investment/BKPM released data, investment realization for the January-September 2022 period of Rp892.4 trillion or 74.4 percent of the investment realization target in 2022, which is Rp1,200 trillion.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto revealed Indonesia's economic performance in the midst of global challenges.

"Indonesia's economic resilience and performance, coupled with the determination of a balanced geopolitical position and deft foreign policy, have put Indonesia in a strong position to face political and economic challenges as a result of the pandemic, disruption of supply chains and the Russia-Ukraine conflict," said the chairman of Golkar when speaking at the Gala dinner organized by the United States-Indonesia Society (USINDO).

Along with the investment target that enters Indonesia reaching IDR 1,200 trillion in 2022, Coordinating Minister Airlangga also offers various advantages of Indonesia to global investors.

First, Indonesia is part of a stable area that is included in the regional and global value chain.

Second, the Indonesian market is considered large, especially considering that the Indonesian population with per capita income continues to increase.

Third, potential investment projects that are of high quality and consistent with sustainable development goals.