BKPM Expects Investment Growth of 15 Percent in 2014
6 December 2013 17:56 WIB
TEMPO.CO, Jakarta - The Head of the Investment Coordinating Board (BKPM), Mahendra Siregar, expects next year’s investment growth to increase. “I am adamant that 15 percent growth is possible,” he said after his speech at the HSBC Global Economic Outlook at the Ritz Carlton Ballroom in Pacific Place, Jakarta, Wednesday, December 4, 2013.
In his view, there is a need for investments with an added value, in order to strengthen the economic structure. The reason is that these investments will generate employment and competitiveness. “So, I believe that we should encourage investing, including keeping the balance of payments in better shape and maintaining financial stability.”
Previously, Minister of Finance Muhamad Chatib Basti predicted that it would be unlikely for the investment sector, especially foreign capital inflows, to become Indonesia’s source of economic growth in 2014—targeted at 6.4-6.9 percent. This is because investments have been sluggish following global economic turbulence.
Chatib also expected that next year’s fiscal space is Rp15-20 trillion, to come from austerity in state expenditures. The fiscal space will be utilized for the development of public infrastructure and transportation. “It can also improve economic growth,” he explained.
MAYA NAWANGWULAN
