"The positive sentiment has already been felt, marked by the inflow of around Rp20 trillion to the domestic bonds market," he said at a CIMB Economic Forum here on Thursday.
Tigor said the economic policy package launched by the government in 2015 to boost the domestic economy has been one of the factors for investors confidence improving in Indonesia.
"With a variety of economic policy packages issued by the government, we are optimistic that investment climate in Indonesia is now friendlier for industrialists and the situation will make capital inflows into the country sustainable," he said.
Tigor further stated that the governments focus on infrastructure development would also increase investors optimism.
"Positive sentiment has started to form. The cement sector, for example, has started to move in the third and fourth quarter of 2015. We hope it will continue in line with infrastructure development. It is not only the cement sector, but derivatives industry as well," he said.
Minister of Public Works and Housing, Basuki Hadimuljono said after experiencing difficulties in 2015, he would speed up infrastructure development in 2016.
"The acceleration of infrastructure development is expected to be able to address the challenge of disparity between regions," he said.
Basuki said this year his office plans to build eight new dams after it built 14 in 2015 in addition to a number of toll road sections in Java, including the Kertosono-Ngawi and Kertosono-Mojokerto, which are expected to be completed in 2017 and Mojokerto-Surabaya in 2018.
Meanwhile, outside Java there will be a 4,345 kilometer long Trans-Papua road development project.
The minister said given the framework of spreading economic activities, his office has decided to hand contracts worth below Rp50 billion to provincial governments or local businessmen.
"Contracts worth below Rp50 billion will be prioritized for local businessmen and not for big businessmen," he said.
He said his ministry has also asked state-owned companies (BUMN) that carry out large-scale projects to not cooperate among themselves.
"We will direct them to cooperate with private companies. We wish to spread economic activities evenly across regions," he said.
Coordinating Minister for Political, Legal and Security Affairs, Luhut Panjaitan said the government is optimistic that national economic growth will reach 5.3 to 5.6 percent this year.
"I will focus on three issues:narcotics, terrorism and economy," he said.
He also said terrorism had emerged because the economy was still weak and there was economic disparity.
"The economic acceleration program is expected to be able to reduce poverty, which is the source of all of the problems," he said.(*)