Bappenas: Unicorn Increases Capital Inflow

TEMPO.CO, Jakarta - The National Development Planning Board (Bappenas) Head Bambang Brodjonegoro deemed that the growth of unicorn makes the money flow to overseas is far smaller than the fund entering the country.

“The figure of capital inflow is higher than the capital outflow’s,” Bambang said at Ayana Mid Plaza, Jakarta, Tuesday, February 19.

The growth of unicorn, a startup company with a valuation of US$1 billion, Bambang opined, has become a magnet of foreign capital to the country.

“[Unicorn doesn’t draw] capital outflow, but foreign direct investment,” he noted. The reason is that when some share of a unicorn company is acquired by a foreign party, in the balance of payment, it is considered as a capital inflow.

Read: Prabowo Wary of Indonesia`s Unicorn and Money Running Overseas

However, Bambang did not deny that every foreign direct investment will flow the dividend overseas yet the figure is not comparable with the inflow. “We can even see that if a unicorn develops, some of its dividends are used for investment.”

Bambang made the statement in response to the accusation conveyed by presidential hopeful number 02 Prabowo Subianto who feared the growth of unicorn could speed up the flow of money from the country to overseas.

Bambang underlined that unicorn has a significant impact on the Indonesian economy considering the name unicorn shows that national startup reaches an international level with a high market value.

“A high market value draws investment,” he noted. In addition, he expected the business development could encourage businessmen to be a huge player in global and promote local products to international markets.

At present, Bappenas conducts a study to anticipate the growth of the digital economy and industry revolution 4.0. According to Bambang, a unicorn is one of the actors that could bring transformation in the domestic economy.

CAESAR AKBAR