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Indonesia Sees Rp131tn Foreign Investment in July
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Monday, 07 August, 2017 | 08:46 WIB
Indonesia Sees Rp131tn Foreign Investment in July

TEMPO.CO, Jakarta - Bank Indonesia (BI) reports that Indonesia saw Rp131 trillion foreign direct investment (FDI) in July, a year-on-year increase from Rp124 trillion. BI Governor Agus Martowardojo believes that it reflects global investors’ trust on the country.

Agus said that foreign funds were invested in several instruments, such as government bonds, corporate bonds and the capital market. “Indonesia as a developing country has become one of favorite destinations for investors aside from India,” he said on Friday.

Indonesia’s stable economy, Agus added, is shown by several indicators. One of which is steady inflation rate which is predicted to reach the full-year target of 4 percent, plus/minus 1 percentage point.

Agus said that consumer demand continues to weaken since the turn of the year. “The reason is ongoing corporate and bank consolidation that has affected people’s income,” he said. He expects that consumer demand to get better in the second half of the year in line with the acceleration of economic improvement.

Nevertheless, Agus is optimistic the economic growth target will be achieved at the end of the year i.e. at around 5-5.4 percent. Aside from steady inflation rate, the economy is underpinned by improved trade balance, persistent current account deficit and stability of the rupiah.




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