TEMPO.CO, Jakarta - The Investment Coordinating Board (BKPM) has recorded an increase in investment realization in the first quarter (Q1) of the year, despite the COVID-19 outbreak. More specifically, BKPM recorded investment realization during the first three months of 2020 reached Rp 210.7 trillion.
“Beneath the COVID-19 (outbreak), don’t be overly pessimistic, let’s just pray for the outbreak to end quickly,” said Chief of the BKPM, Bahlil Lahadalia, in an online press conference in Jakarta, on Monday, April 20, 2020.
Investment realization in the first quarter of the year has contributed 303,085 employment opportunities from 25,192 investment projects.
As such, investment realization has increased 1.2 percent quarter-to-quarter (qtq) and 8 percent year-on-year (yoy). In comparison, investment realization in the first quarter of 2019 was Rp195.1 trillion, or 5.3 percent yoy.
Bahlil explained that the first quarter investment realization has contributed 23.8 percent to the annual target of Rp886.1 trillion, an increase from last year’s annual target of Rp792 trillion.
In spite of this, Bahlil acknowledged that the annual target is hard to achieve, due to an expected decrease in investment realization in the second quarter. Although the target has not been revised, the BKPM has drawn up a number of simulations.
In terms of the optimistic simulation, the initial target of Rp886.1 trillion is achievable. On the other hand, the pessimistic simulation amounted to Rp885 trillion, with the very pessimistic simulation amounting to Rp817 trillion.
FAJAR PEBRIANTO | DIO SUHENDA (INTERN TRANSLATOR)