RI upbeat over investment target in 2013

Jakarta (ANTARA News) - Capital Investment Coordinating Board (BKPM) Head Chatib Basri said Indonesia would benefit from the push and pull factors in its efforts to achieve its investment target of Rp390 trillion in 2013.

"Even though the world economy, in Europe in particular, is still unstable, we can benefit from a number of factors that will enable us to achieve the investment target in 2013," the BKPM chief said here on Tuesday.

The first factor is the push factor. Now the biggest investor country in Indonesia is Japan. In the latest condition in Japan, the yen currency is appreciating so that the production cost in Japan is very high.

Chatib said such a condition pushed Japan to seek other countries for ts investment and to cooperate in the production of goods. One of its target is Indonesia.

"Indonesia is the fifth destination country for Japan so that many Japanese companies considered Indonesia as a potential market and a potential country for investment. If the appreciation of yen continued to take place it will cause high production costs and many Japanese companies will make investment in Indonesia next year," he said.

The second factor is the pull factor where the number of middle-class people in Indonesia continues to increase. This condition is promising for companies to market their products because the people`s purchasing power is high.

After all, the increase in the number of middle class people in Indonesia is extraordinary.

"A family who in the past could only buy one television set is now able to purchase two or three TV sets. This does not only happen with only one family but also with the average families across the country. This will be promising for companies to produce goods so that many Japanese firms will make investment in Indonesia," he said.

Regarding the realization of the investment target in 2012, Chatib express optimism that at the end of the year the domestic and foreign investment realization would reach Rp300 trillion.

"We are upbeat that the realization of the investment at the end of the year would be over Rp300 trillion, because we are convinced after seeing the realization of investment in the first half of the year which has reached Rp76.9 trillion. This is the highest ever," Chotib said. (A014)

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