Based on observation over the past 15 years, the government has found out that investment usually slows down before elections. This year the implementation of simultaneous legislative and presidential elections to be held on April 17, 2019.
Thomas Trikasih Lembong, head of the Investment Coordinating Board (BKPM), has expressed optimism that investment would rebound after the April elections, owing to high market expectation on stability and continuity as reported by Antara.
"It will rebound. (The 2019) election will be held on April 17, and we still have 7.5 months after the voting day for the investment sector to recover from the pre-election slowdown," Lembong said during a discussion with foreign investors.
The agency has set a target of investment at Rp792.3 trillion (US$56 billion) in 2019, higher than Rp721.3 trillion ($51 billion) in 2018. The target has covered 55 percent of foreign investment and 45 percent of domestic investment.
In 2018, the realization of investment in Indonesia reached Rp712.3 trillion, accounting for 94.3 percent of the target of Rp765 trillion in the medium-term national development plan.
Compared to the previous year, the investment in 2018 rose 4.1 percent, with domestic investment amounting to Rp328.6 trillion and foreign investment amounting to Rp392.7 trillion. The investment mostly went to West Java, Jakarta, Central Java, Banten, and East Java.
The domestic investment represented a 25.3 percent increase compared to the previous year. However, the foreign investment in 2018 fell 8.8 percent compared to a year earlier.
The five largest foreign investors in Indonesia are Singapore ($9.2 billion, 31.4 percent); Japan ($4.9 billion, 16.7 percent); China ($2.4 billion, 8.2 percent); Hong Kong ($2.0 billion, 6.8 percent); and Malaysia ($1.8 billion, 6.2 percent).
(source: Antara News)