International confidence to boost capital inflow: President

International confidence to boost capital inflow: President

President Joko Widodo (ANTARA PHOTO/Rosa Panggabean)

"This will create inflows of money, capital, and investment," Jokowi said.
Jakarta (ANTARA News) - President Joko Widodo expressed his belief that investment grade ratings that have been awarded to the country by international rating agencies so far would boost investment and capital inflows.

"This will create inflows of money, capital, and investment," he said in an interview with ANTARA here on Thursday.

He stated that he believed the capital inflow would not only stop at portfolio or shares in the stock market but will also go to the real sector.

"We will push the flow to the real sector. They may build factories, industrial zones, or infrastructure that we need to open as much employment as possible for the people," he remarked.

He said that the investment grade ratings reflected the international confidence in Indonesia, especially with regard to the ease of investing in the country.

"This is important for us to continue to conduct reform, simplify licensing procedures, provide more infrastructure that would determine our competitiveness, and overcome high cost at sea ports, airports, and roads," he said.

Regarding the impact of investment for ordinary people, Jokowi explained that with the inflow of capital and investment money circulation in regions would be bigger and open up employment for the local people.

"I think people will enjoy their positive aspects and job opportunities, and with bigger money circulation, welfare will be improved," he revealed.

Jokowi said that bigger money circulation in the regions would increase regional economies.

"There will be job opportunities which, in combination with bigger money in circulation, will in turn increase peoples buying power," he remarked.

He said that the buying power of the people for local commodities would rise to make farmers able to sell their produce at better prices and so will the fishermen with their catch.

"The chain effect will be like that. People often ask about the connection between investment and poverty. That is the connection. Investment will open more jobs and increase money in circulation," he pointed out.

On the occasion, Jokowi expressed his gratitude that Indonesia has been able to receive investment grade ratings from various international agencies.

"After Fitch Rating, there are Moodys, S&P, and then UNCTAD that has also increased its rating on Indonesia from eighth to fourth after US, China, and India, he explained.

The United Nations Conference on Trade and Development has put Indonesia in the fourth rank as a prospective investment destination in 2017-2019. The position is higher than in 2016, when it was at the eighth rank.

The result of UNCTADs business survey on a number of multinational companies showed that Indonesia received 11 percent responses out of the total business executives being surveyed.

The first rank went to the US collecting 40 percent responses, followed by China with 36 percent, and India with 20 percent.

Thailand was ranked fifth after Indonesia, while the Philippines was at 10th, Vietnam at 12th, and Singapore at 13th position.(*)