"The real sector has not yet developed well and has not contributed to the enhancement of employment because the government so far has directed foreign capital inflows into other sectors," economic observer Ifan Kurniawan said here on Wednesday.
He said that foreign funds entering the capital market continued to increase where on the first day they amounted to Rp300 billion and on the second day, they rose over 200 percent to Rp637 billion or almost reaching Rp1 trillion in two days.
Ifan said that the swift flow of foreign investment into Indonesia was attributable to the preference on foreign players who were still reluctant to invest their funds in the United States and Europe.
They were still reluctant to make their investment in the US and Europe because the market in the two regions were not yet promising following the recent global financial crisis.
The United State government and Congress had agreed to raise the ceiling of the country`s debts but it seemed that the agreement would only be able to overcome the default experienced by the United States.
He said that US economic growth would also not be high because the reduction in a number of posts of its expenditures over a period of ten years would narrow the flexibility of economic activities.
In the meantime the manufacturing data of the US which fell from 55.3 percent to 50.9 percent indicated the declining market demand while production was showing an upward trend.
He said that the relatively high rate of unemployment in the United States constituted a chance for Indonesia to attract bigger number of investors.
Ifan said that in the coming two or three years, Indonesia would still be an attractive place for foreign investors to place their money.
(Uu.A014/HAJM/F001)
Editor: Priyambodo RH
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