A road in Jakarta, Indonesia (Photo: VNA) Jakarta (VNA) – Indonesia has revised this year’sinvestment attraction target down to 817 trillion Rp (57.5 billion USD) from886 trillion Rp due to COVID-19 impacts.
At a recent press briefing, head of thecountry’s Investment Coordinating Board Bahlil Lahadalia noted foreign directinvestment (FDI), which accounts for less than half of total investment,fell by 9.2 percent to 98 trillion Rp in the first three months from the sameperiod last year.
With many countries introducing lockdownmeasures to contain the spread of the COVID-19 outbreak, economic activitiessuch as trade and investment are slowing down, he said, adding that it is alittle bit difficult to expect new investment to flow amidst the pandemic.
As a result, the share of investmentin economic growth rose only 1.7 percent in Q1 from a year earlier. Meanwhile,it grew by more than 4 percent year on year in Q4 last year.
However, Indonesia’s total investment figuregrew 8 percent year on year to 210.7 trillion Rp in Q1, bolstered bythe domestic investment of 112.7 trillion Rp, according to StatisticsIndonesia.
Lahadalia said the COVID-19-induced economicdownturn started to impact investment in the country in mid-March,resulting in a decline in FDI.
The Investment Coordinating Board is trying toaccelerate the investment realisation in many ways, including digitalisingvarious administrative processes to attract more investors./.
VNA
