TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati, expressed her confidence that investments in 2017 will be much better compared to last year. "[Investment rate] will probably still under five percent. This is one of [the government's] homework for 2017," Sri said on Tuesday, February 7, 2017.
Sri explained that several factors, including results of a meeting between the Financial System Stability Committee (KSSK), Financial Services Authority (OJK), and Bank Indonesia (BI), indicated that the banking industry has shown an improving projected credit growth. Such condition, according to Sri is the main source of investment.
"From the capital market point of view, as long as we're confident and can sustain the macroeconomic fundamentals, and can maintain the [positive] momentum, market capitalization would continue to show [improvements]," Sri said.
She also added that from state-owned enterprises point of view, state capital investments (PMN) provided for state-owned companies is expected to show results. However, Sri said that investments will likely be disrupted by external sentiments such as the increase in the Fed Fund Rate (FFR).
"We hope that [foreign investments] and [domestic investments] will become positive contributors. Investments have been going on pretty good even if it was [affected] by external situations," Sri said.
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