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[News] After Political Reconciliation, Investment Climate Looks Promising
Posted at: 07 August 2019

Foreign direct investment (FDI) showed signs of recovery during the first half of this year following a downward trend seen since the end of last year as reported by The Jakarta Post.

The Investment Coordinating Board (BKPM) reported on Tuesday that the realization of total investments in the country reached Rp 395.6 trillion (US$28.2 billion) during the first half of 2019, up by 9.4 percent in the same period last year.

The increase was higher than the 7.4 percent in the same period last year as investors resumed their business expansions following a time of wait-and-see ahead of the April elections.

The realization of FDI rose by 4 percent year-on-year (yoy) from the first half of 2018 to Rp 212.8 trillion, whereas domestic investments showed a higher growth of 16.4 percent yoy to Rp 182.8 trillion.

Although the increase in the FDI was still relatively small from January to June, the FDI flows into the country showed signs of recovery after a weak performance in the first quarter and throughout 2018, during which the realization of the FDI was 0.9 percent yoy and 8.8 percent yoy, respectively.

The positive outlook, thanks to Indonesia's success in concluding the presidential and legislative elections, a political reconciliation between the two competing presidential candidates, incumbent Joko "Jokowi" Widodo and Prabowo Subianto, and a rating upgrade provided by the Standard and Poor's.

(source: The Jakarta Post)