Government Optimistic in Reaching 2013 Investment Targets

Fathan Qorib, Robert Sidauruk

Mahendra Siregar, Deputy Minister of Finance, said that the Government remains optimistic that the investment target of IDR 390 trillion for this year can be achieved, despite the slowdown in domestic consumption growth.

He made these comments at a seminar as part of an event for the eighth anniversary of the Deposit Insurance Corporation (LPS) in Jakarta on Monday.

According to investment data recorded by the Indonesia Investment Coordinating Board (BKPM), investment in the first quarter of 2013 reached IDR 192.8 trillion.

Although the figure is still far behind the target, Mahendra believes total investment in 2013 will reach the set target of IDR 390 trillion.

However, in responding to the question of whether or not Indonesia will reach the investment target for 2014 of IDR 506 trillion, the Deputy Minister said that that outcomes will depend heavily on economic developments in the near future.

According to the Deputy Minister, it is possible to alter investment targets if they are no longer considered reasonable based on economic developments at the time.

“It should be noted that investment targets are subject to adjustment according to the economic conditions that occur in the future,” said Mahendra.

The Deputy Minister further explained that next year’s national economic development will be influenced by consumption rates and investment targets set by the Government.

As long as both variables are consistently stable, national economic development should meet expectations.

Previously, Bank Indonesia (BI) predicted that there will be a decline in national economic development in 2014.

Difi A Johansyah, Executive Director of the Communication Department at BI has said that national economic development in 2014 will be in the vicinity of 5.8% to 6.0%, below the previous estimate of 6.0% to 6.4%.

According to Difi, this decrease has resulted because of the ongoing slowdown of global economic growth and uncertainty over global finances, especially in emerging markets such as China and India. This situation will be exasperated by the price decrease of most world commodities except for oil.

“Global economic development is now estimated to only hit 3.5% from the previous projected target of 3.7%,” said Difi.

(hot/kc)

Fathan Qorib, Robert Sidauruk

Mahendra Siregar, Deputy Minister of Finance, said that the Government remains optimistic that the investment target of IDR 390 trillion for this year can be achieved, despite the slowdown in domestic consumption growth.

He made these comments at a seminar as part of an event for the eighth anniversary of the Deposit Insurance Corporation (LPS) in Jakarta on Monday.

According to investment data recorded by the Indonesia Investment Coordinating Board (BKPM), investment in the first quarter of 2013 reached IDR 192.8 trillion.

Although the figure is still far behind the target, Mahendra believes total investment in 2013 will reach the set target of IDR 390 trillion.

However, in responding to the question of whether or not Indonesia will reach the investment target for 2014 of IDR 506 trillion, the Deputy Minister said that that outcomes will depend heavily on economic developments in the near future.

According to the Deputy Minister, it is possible to alter investment targets if they are no longer considered reasonable based on economic developments at the time.

“It should be noted that investment targets are subject to adjustment according to the economic conditions that occur in the future,” said Mahendra.

The Deputy Minister further explained that next year’s national economic development will be influenced by consumption rates and investment targets set by the Government.

As long as both variables are consistently stable, national economic development should meet expectations.

Previously, Bank Indonesia (BI) predicted that there will be a decline in national economic development in 2014.

Difi A Johansyah, Executive Director of the Communication Department at BI has said that national economic development in 2014 will be in the vicinity of 5.8% to 6.0%, below the previous estimate of 6.0% to 6.4%.

According to Difi, this decrease has resulted because of the ongoing slowdown of global economic growth and uncertainty over global finances, especially in emerging markets such as China and India. This situation will be exasperated by the price decrease of most world commodities except for oil.

“Global economic development is now estimated to only hit 3.5% from the previous projected target of 3.7%,” said Difi.

(hot/kc)

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