Government remains optimistic over investments into Indonesia
TEMPO Interactive, Jakarta: Head of fiscal policy, Bambang Brodjonegoro, estimates investment realizations during the second quarter of this year are still quite high. "At the very least, comparable with the first quarter," Bambang said at the Finance Ministry, Tuesday, July 24, 2012.
In the first quarter of 2012, they were Rp. 71.2 trillion, up 32.8 percent over the same period last year, with domestic investments at Rp19.7 trillion and foreign investments at Rp51.5 trillion.
He based his estimates on the data that imports of raw materials or capital goods are still high. That shows activities in the manufacturing sector, one of the drivers of investments, are still running.
In addition, value added taxes (VAT) are also higher than normal. High VAT growth indicates a strengthening real sector. Investments in trade, especially in the retail sector, also continue to show significant growth.
Bambang hopes this good condition can last until the end of the year and investors will shift their capitals to invest in Indonesia that continues to offer high interest rates. "It’s our hope that towards the end of the year there continues to be a capital inflow," he said.
In terms of economic growth, the government still uses as a guideline the International Monetary Fund’s (IMF) estimate of a world economic growth of 3.5 to 3.9 percent, so the national economic growth target of 6.4 percent is still quite realistic.
Although conditions in Europe and Greece are increasingly deteriorating, Bambang believes that Europe has a way to save Greece and not let the country go bankrupt.
By Gustidha Budiartie
25 July 2012