"Indonesia is a viable option because India is facing a problem of rising inflation."Jakarta (ANTARA News) - Experts have predicted that investments in Indonesia will reach Rp310 trillion by the end of this year, surpassing the target of Rp283.5 trillion.
"Even though there are uncertainties in the global economy due to a number of crises in several European countries, investments in Indonesia will continue to grow," said Chatib Basri, head of the National Investment Coordinating Board (BKPM), during a seminar on Economic Outlook 2031: Perspective of the Global Economic Uncertainty, on Wednesday.
He said despite these uncertainties, Indonesia can attract more investments compared to other countries such as China, Vietnam and India.
Chatib said Europe's fiscal cliff will result in a fiscal contraction.
"When fiscal contraction occurs, European countries, through the European Central Bank (ECB), will certainly inject funds into money markets," he said.
Meanwhile, the US, in order to boost its growth, will carry out quantitative easing (or face economic stagnation), he said.
The ECB and the Fed will inject funds into money markets, but the funds will not be invested in Europe and the US. Instead, the funds will be injected into emerging markets, including Indonesia.
"Indonesia is a viable option because India is facing a problem of rising inflation. Vietnam has requested for assistance from the IMF and China is facing an economic slowdown," he said.
Chatib said Indonesia should take this opportunity to increase the country`s investments.
"The investment system in the country should be enhanced. Investors should not face difficulties while accessing information on investment opportunities," he said.
He said one of the biggest obstacles with regard to investments in the country is bureaucracy.
He said BKPM has implemented an online tracking system to monitor the process of an investment application and its realisation.
"We should not be unprepared when there is a possibility that investments in the country can increase," he said.
(T.R017/H-YH/INE/KR-BSR/A014)
Editor: Priyambodo RH
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