Head of the Investment Coordinating Board (BKPM) Thomas Lembong explained that Indonesia’s current investment rating is skyrocketing. Therefore, he is optimistic that the investment climate in Indonesia will be more attractive in the eyes of foreign investors following affirmation for investment grade rating by Standard and Poor’s (S&P).
Indonesia is also increasingly known to the world after one of the United Nations (UN) United National Conference On Trade and Development (UNCTAD) agency places Indonesia on the fourth rank as the prospective country of investment destination in 2017-2019.
“I think it has been increasingly recognized by various circles around the world. Indonesia rises to fourth rank. Its position is from eighth to fourth as investment destination in the world,” said Thomas, Tuesday (10/17/2017).
Thomas will continue to develop investment achievements as directed by President Jokowi who wants to shift the Indonesian economy from consumption to production.
“In early 2015 the President clearly affirmed shifting the economy from consumption to production, from consumption to investment,” Thomas said.
For information, Indonesia achieved a response of 11 percent of the total executives surveyed. Thailand, the closest competitor, now ranks 5th, is better than the previous year’s 14th, while Singapore is 13th, up five ranks from last year’s 18th.
Besides the United Nations rating, the World Bank Group also released a positive report about the Indonesian economy:
- Indonesia’s real GDP expanded by 5.0 percent year on year in Q2 2017, unchanged from Q1. Growth rates have been steady at around 5 percent since Q1 2014, lower than those recorded at the beginning of the decade.
- Indonesia’s macroeconomic fundamentals are sound and have been strengthening, as the Government continues to implement critical structural reforms.
- Investment growth rose to the highest levels since Q4 2015, driven largely by investments in buildings and structures.
- Real GDP growth is expected to reach 5.1 percent in 2017, climbing to 5.3 percent in 2018, on a supportive global economy and stronger domestic demand as reforms continue and gradually start paying dividends.