TEMPO.CO, Jakarta - The Investment Coordinating Board or BKPM expert staff on Wednesday said that the global economic crisis had driven foreign investment on the global scale to drop 30-40 percent. It contracted even deeper since 90 percent of countries in the world are battling the crisis caused by the COVID-19 pandemic.
“The recession had started since the trade war, Brexit, and the pandemic. The global contraction had caused foreign direct investments to decline,” said Heldy Satrya Putera, BKPM Expert Staff for Investment Competitiveness in a webinar held by Katadata on November 4.
Citing data from the World Bank, Heldy said this condition has imposed major uncertainty for investments as nearly every country is undergoing recession in one way or another which is arguably the largest in 149 years since 1871.
However, amidst the weakening global foreign direct investment, he said, ASEAN is still seeing growth compared to other countries and claimed that Indonesia still dominates in terms of investment. Heldy said this is visible in the third quarter which saw a 1.1 percent growth YoY.
In January-September 2020, Indonesia's investment realization was recorded at Rp611.6 trillion, while last year's investment was at Rp601.3 trillion.
FRANCISCA CHRISTY ROSANA