TEMPO.CO, Jakarta - Mahendra Siregar, chief of the Investment Coordinating Board (BKPM), questioned the report released by the United National Conference on Trade and Development (UNCTAD) that records a decrease in Indonesia's foreign investment flow. He asserted that it is possible that the report employs different methods.
“What must be known is that whether the report only records foreign investors or includes domestic investors," said Mahendra, adding that the investment flow must all be included in calculation. He also criticized the report because UNCTAD was not present when the report was released.
On Tuesday, June 24, 2014, UNCTAD reported that foreign direct investment (FDI) in Indonesia is the lowest compared to other ASEAN countries. Indonesia is listed on the same level with Cambodia in terms of declining investment flow.
FDI to Indonesia last year has reached US$18.4 billion, 3.6 percent lower compared to the value recorded in the previous year, which was US$19.1 billion. The report states that Indonesia has been affected by the financial sector turmoil since mid-2013.
Mahendra said that the investment target will not be changed. According to BKPM and Bank Indonesia there are no signs of the economy weakening.
FAIZ NASHRILLAH
