TEMPO.CO, Jakarta - Coordinating Minister of Maritime Affairs and Investment, Luhut Pandjaitan says the feud between the United States and Iran will not affect foreign investments or capital flows.

“It will not really have an effect. We’re set to meet Adam from the U.S. International Development Finance under the White House. He will bring in investments for state-owned enterprises and several projects,” said Luhut at his headquarters on Monday, January 6.

Minister Luhut claims the investment value will reach billions of dollars, even though he doesn't elaborate on the specific number. The investments are set to fund state-infrastructure projects from highway constructions up to hospital establishment.

Through this, he asserts that the escalation between the United States and Iran will not affect Indonesia.

“It may be tense there, but we are relaxed here. Don’t be too tense about it,” said Luhut Pandjaitan.

Previously reported, the Center of Reform on Economy research director, Piter Abdullah, predicts the tension between the West and the Middle East will be a driving factor in hampering foreign investments from entering Indonesia.

The research director explained that in a situation where a possible war might break out, investors will opt to invest in regions with the least amount of risk such as the United States. He predicts Indonesia is categorized as risky as geopolitics will play a part.

CAESAR AKBAR