Based on the results of a recently conducted survey, I think the conditions are still favorable."
Jakarta (ANTARA News) - The domestic investment climate remains conducive despite global economic woes, stated Head of the Investment Coordinating Board (BKPM) Mahendra Siregar.

"The momentum to maintain a good investment climate relies on us, rather than the global conditions. We are now in a better position, and we must take advantage of it," he told during the seminar "Making 2014 The Year of Economic and Business Confidence" held here on Thursday.

Domestic direct investment has both medium- and long-term benefits. Hence, a short-term anticipatory step is necessary to decrease dependence on imported fuel oils and to maintain financial liquidity amid the Feds move toward tapering of quantitative easing, he noted.

"Dont let the short-term benefits impinge upon the long-term benefits," he pointed out.

He forecast that the foreign direct investment inflows will show a 15 percent growth this year, based on the value in the pipeline.

"The question is whether or not the companies will have adequate cash flows when they realize their investment plans due to the global conditions, among other factors. I expect the investment growth to reach 15 percent," he added.

He claimed that the year of elections may increase the flow of investments.

"Based on the results of a recently conducted survey, I think the conditions are still favorable. There is no change. Some say the general elections may cause investment to grow at a faster pace. Of course, the investors are more cautious or the other way around. I see it as the best opportunity to make reforms," he emphasized.

He expressed hope that the domestic investment growth will help to boost the countrys foreign exchange reserves and export revenues.

"If this is the case, quality investment will create more jobs and boost the growth of the middle class in Indonesia, which will eventually serve as the basis for economic growth," he remarked.

(Reporting by Zubi Mahrofi/Uu.INE/KR-BSR/H-YH)

Editor: Priyambodo RH
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