Wed, 14 Jan 2009
Aditya Suharmoko, The Jakarta Post, Jakarta

Despite the global economic downturn, the estimated realized direct investment in Indonesia may still reach double-digits this year spurred by incentives and the stimulus packages designed by the government, the Investment Coordinating Board (BKPM) says.

“Investment might grow by double digits, at between 10 and 11 percent with (the planned) incentives, stimulus packages and simplification,” BKPM chairman M. Lutfi said in a discussion at the Regional Representatives Council (DPD) Monday.

Lutfi said investment last year grew by about 15.5 percent from 2007. Indonesia secured US$17 billion in investment last year, the highest in Southeast Asia, leaving Singapore behind with $12 billion, he said.

The government is providing about Rp 12.5 trillion of stimulus in the form of waived value added tax to help industries coping with the global economic slowdown. The amount will be increased by Rp 38 trillion later in the year, taken from undisbursed funds transferred on from the 2008 state budget.

Analysts have said exports and investment will be the hardest hit by the global economic downturn.

Lutfi said these stimulus measures would provide some leeway for businesses to make investments. The stimulus will only be given to businesses engaging in infrastructure, the energy sector and manufacturing.

He said in addition to waived value added tax, a good investment climate would also help support investment in the country. “However, what’s most important is the government’s commitment to make the country (an economic hub) as a half-processed goods producer.”

However private sector business leaders said BPKM was too optimistic in expecting investment to grow by between 10 percent and 11 percent amid the adverse global economic conditions.

“It seems it is unrealistic to expect private investment (to reach) such a high growth target.

Even government’s investment might not be able to reach the target considering slow spending, and foreign investment will reduce due to the (global financial) crisis,” said Bambang Soesatyo, head of the fiscal and monetary committee at the Indonesian Chamber of Commerce and Industry (Kadin).

He said the stimulus would only raise the production capacity of domestic industries slightly, but was still far too inadequate to create new investment.

“There are many obstacles for local investors. Interest rates are still high and liquidity is still dried up,” he added.

Bambang also said it would be a difficult task for the government to raise people’s purchasing power amid the global economic slowdown.

He added that it will be useless if businesses raise their production capacity but people are gradually losing their purchasing power.

Indonesia’s economy is about 70 percent driven by domestic consumption, according to the government. Investment only accounts for about 15 percent of economic growth.

The government is still expecting growth of between 4.5 and 5.5 percent this year, down from the estimated 6.1 percent in 2008.



News Search/Filter
Transaction Rates
23 Jul 18
Buy
Sell
AED1
3,897.16
3,897.16
AFN1
196.36
196.36
ALL1
133.46
133.46
AMD1
29.81
29.81
ANG1
7,753.25
7,753.25
AOA1
55.94
55.94
ARS1
520.20
520.20
AUD1
10,637.91
10,637.91
AWG1
8,001.26
8,001.26
AZN1
8,407.81
8,407.81
BAM1
8,585.37
8,585.37
BBD1
7,157.15
7,157.15
BDT1
170.56
170.56
BGN1
8,585.32
8,585.32
BHD1
37,903.83
37,903.83
BIF1
8.01
8.01
BMD1
14,314.30
14,314.30
BND1
9,473.47
9,473.47
BOB1
2,085.79
2,085.79
BRL1
3,794.58
3,794.58
BSD1
14,314.30
14,314.30
BTC1
110,254,360
110,254,360
BTN1
209.15
209.15
BWP1
1,391.53
1,391.53
BYN1
7,213.66
7,213.66
BZD1
7,117.06
7,117.06
CAD1
10,910.17
10,910.17
CDF1
8.85
8.85
CHF1
14,443.85
14,443.85
CLF1
595,189.56
595,189.56
CLP1
21.66
21.66
CNH1
2,115.01
2,115.01
CNY1
2,117.84
2,117.84
COP1
5.00
5.00
CRC1
25.22
25.22
CUC1
14,314.30
14,314.30
CUP1
561.34
561.34
CVE1
151.55
151.55
CZK1
649.81
649.81
DJF1
80.40
80.40
DKK1
2,255.05
2,255.05
DOP1
288.71
288.71
DZD1
121.63
121.63
EGP1
801.06
801.06
ERN1
945.62
945.62
ETB1
517.50
517.50
EUR1
16,806.19
16,806.19
FJD1
6,777.77
6,777.77
FKP1
18,817.70
18,817.70
GBP1
18,817.70
18,817.70
GEL1
5,851.61
5,851.61
GGP1
18,817.70
18,817.70
GHS1
2,985.25
2,985.25
GIP1
18,817.70
18,817.70
GMD1
297.90
297.90
GNF1
1.57
1.57
GTQ1
1,909.23
1,909.23
GYD1
68.89
68.89
HKD1
1,823.60
1,823.60
HNL1
595.68
595.68
HRK1
2,269.44
2,269.44
HTG1
213.19
213.19
HUF1
51.65
51.65
IDR1
1.00
1.00
ILS1
3,939.05
3,939.05
IMP1
18,817.70
18,817.70
INR1
208.23
208.23
IQD1
12.07
12.07
IRR1
0.32
0.32
ISK1
134.87
134.87
JEP1
18,817.70
18,817.70
JMD1
109.72
109.72
JOD1
20,175.09
20,175.09
JPY1
128.88
128.88
KES1
143.20
143.20
KGS1
209.74
209.74
KHR1
3.52
3.52
KMF1
34.06
34.06
KPW1
15.90
15.90
KRW1
12.68
12.68
KWD1
47,312.67
47,312.67
KYD1
17,166.07
17,166.07
KZT1
41.58
41.58
LAK1
1.71
1.71
LBP1
9.47
9.47
LKR1
90.10
90.10
LRD1
93.40
93.40
LSL1
1,066.59
1,066.59
LYD1
10,446.91
10,446.91
MAD1
1,517.54
1,517.54
MDL1
863.31
863.31
MGA1
4.26
4.26
MKD1
272.33
272.33
MMK1
9.94
9.94
MNT1
5.86
5.86
MOP1
1,771.88
1,771.88
MRO1
40.20
40.20
MRU1
399.28
399.28
MUR1
417.81
417.81
MVR1
929.50
929.50
MWK1
19.70
19.70
MXN1
752.39
752.39
MYR1
3,524.39
3,524.39
MZN1
242.01
242.01
NAD1
1,066.59
1,066.59
NGN1
39.86
39.86
NIO1
451.69
451.69
NOK1
1,753.84
1,753.84
NPR1
130.72
130.72
NZD1
9,761.49
9,761.49
OMR1
37,187.55
37,187.55
PAB1
14,314.30
14,314.30
PEN1
4,370.78
4,370.78
PGK1
4,363.70
4,363.70
PHP1
270.08
270.08
PKR1
111.55
111.55
PLN1
3,890.20
3,890.20
PYG1
2.51
2.51
QAR1
3,931.31
3,931.31
RON1
3,600.38
3,600.38
RSD1
142.19
142.19
RUB1
225.79
225.79
RWF1
16.47
16.47
SAR1
3,816.79
3,816.79
SBD1
1,815.15
1,815.15
SCR1
1,057.85
1,057.85
SDG1
797.76
797.76
SEK1
1,617.84
1,617.84
SGD1
10,516.88
10,516.88
SHP1
18,817.70
18,817.70
SLL1
2.19
2.19
SOS1
24.91
24.91
SRD1
1,919.32
1,919.32
SSP1
109.88
109.88
STD1
0.68
0.68
STN1
675.20
675.20
SVC1
1,634.71
1,634.71
SYP1
27.80
27.80
SZL1
1,066.59
1,066.59
THB1
429.73
429.73
TJS1
1,530.83
1,530.83
TMT1
4,078.17
4,078.17
TND1
5,430.28
5,430.28
TOP1
6,154.20
6,154.20
TRY1
2,994.43
2,994.43
TTD1
2,125.37
2,125.37
TWD1
468.04
468.04
TZS1
6.27
6.27
UAH1
545.10
545.10
UGX1
3.85
3.85
USD1
14,314.30
14,314.30
UYU1
458.29
458.29
UZS1
1.83
1.83
VEF1
0.13
0.13
VND1
0.62
0.62
VUV1
131.21
131.21
WST1
5,520.57
5,520.57
XAF1
25.62
25.62
XAG1
222,393.88
222,393.88
XAU1
17,648,020.07
17,648,020.07
XCD1
5,296.59
5,296.59
XDR1
20,043.33
20,043.33
XOF1
25.62
25.62
XPD1
14,172,583.25
14,172,583.25
XPF1
140.83
140.83
XPT1
11,916,575.02
11,916,575.02
YER1
57.18
57.18
ZAR1
1,068.28
1,068.28
ZMW1
1,463.14
1,463.14
ZWL1
44.40
44.40
Taxation Exchange Rates
31 Aug 16 - 06 Sep 16
USD 1
13,232.00
AUD 1
10,043.30
CAD 1
10,213.70
DKK 1
1,999.40
HKD 1
1,706.22
MYR 1
3,283.28
NZD 1
9,623.63
NOK 1
1,605.23
GBP 1
17,433.70
SGD 1
9,757.68
SEK 1
1,569.45
CHF 1
13,631.10
JPY 100
13,101.00
MMK 1
11.01
INR 1
197.29
KWD 1
43,920.70
PKR 1
126.23
PHP 1
285.00
SAR 1
3,528.53
LKR 1
91.12
THB 1
382.08
BND 1
9,756.53
EUR 1
14,885.50
CNY 1
1,987.61

Okusi Associates: Indonesian Business & Management Services