Our capital balance must be balanced against the foreign direct investment (FDI) entry."
Jakarta (ANTARA News) - The new chief of Investment Coordinating Board (BKPM) will play an all- important role in attracting foreign investment to the country amid slowing economic growth, according Indonesian Finance Minister Chatib Basri.

"In my opinion, BKPM will play an increasingly important role in improving Indonesia`s economic situation as current account deficit (CAD) continues to exist. Naturally, the board`s chief will need to take crucial decisions," he said here on Tuesday.

Chatib pointed out that although CAD will decrease by the end of this year, it will still exist.

"And the deficit must be closed in the capital account. Our capital balance must be balanced against the foreign direct investment (FDI) entry," he said.

Previously, Basri had stated that there would be a slowdown in investment growth this year amid reduced economic growth in Indonesia.

"I think investment will slow down this year, with the economic growth rate corrected to 5.9 percent. As the economy slows down, there will be a decline in some sectors, and one of them will be investment," he explained.

According to Chatib, the slowdown in investment and economic growth this year is related to the government`s policy to reduce CAD and trade deficit.

"Slow economic growth will not only lead to reduced investment but also negatively affect imports," he said.

When asked to comment on speculation about the appointment of the current Indonesian Ambassador to the United States, Dino Patti Djalal, as the new coordinating board head, Chatib expressed ignorance about such developments.

"I do not know because I have not spoken with the president yet," he said.

Chatib clarified that he was only expressing his personal opinion about the possible appointment of Dino as the new BKPM Chairman.

"My view may be biased because I know him (Dino) well. But he has very good diplomatic skills and is capable of playing that role," said Chatib.

Dino is rumored to replace Basri, who is also the Finance Minister, as BKPM head.
(Uu.INE/KR-BSR/H-YH)

Editor: Priyambodo RH
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