BKPM Admits Difficulties in Achieving Year-end Investment Target

TEMPO.CO, Jakarta - The Investment Coordinating Board (BKPM) admits that it is quite difficult to attain this year`s investment target of Rp765 trillion. At the end of semester one, actualized investment amounted to Rp361.6 trillion, up by 7.4 percent, year-on-year (yoy).

However, that figure only accounts for 47.26 percent of the year-end target. In quarter two alone, the actualized investment is Rp176.3 trillion, reflecting a slowing growth of 3.1 percent compared to Q2/2017's yoy growth of 12.7 percent. 

BKPM chief Thomas T. Lembong said the slowdown in quarter two makes it a bit hard to achieve the year-end target.

"But as I have said, the government will not stand still. We will implement drastic breakthroughs if necessary to ward off negative effects," he said on Tuesday, August 14. 

These drastic breakthroughs include curbing imports to save foreign exchange, repairing the trade balance and current account deficits through the use of 20 percent biofuel (B20), assessing incentives for super tax holidays or tax deduction for intermediate industry goods; and preparing a breakthrough in the e-commerce and digital economic sectors.

BKPM will also prioritize capital goods that support investment and can reduce import dependence through customs and excise incentives.

Lembong hopes that, amidst these uncertain conditions, the government will ensure that the state policies do not become a boomerang since shocking policies will have a negative impact on investments.

Bisnis.com