BKPM Chief Optimistic Cabinet Reshuffle Will Boost Investment Realisation
TEMPO.CO, Jakarta - Head of the Investment Coordinating Board (BKPM) Thomas Tri Kasih Lembong expressed optimism that the second cabinet reshuffle could increase investment realisation in the second half of the year. The cabinet reshuffle announced by President Joko Widodo the previous Wednesday was expected to have a positive impact on investor confidence.
"I believe the cabinet reshuffle carried out by the President was an extraordinary step," he said at a press conference at the BKPM building in Jakarta on Friday, 29 July 2016.
"So far, the response from investors and the market has been extremely positive. In my view, this helps improve investor sentiment."
Thomas added that investment realisation in the coming second semester would also be influenced by new policies introduced following the reshuffle. "We will also be monitoring the success of the tax amnesty programme," he said.
In addition, BKPM planned to intensify its promotion and facilitation of investment activities.
BKPM recorded that investment realisation in the second quarter of 2016 rose 12.3 per cent compared with the second quarter of 2015. During April to June, investment realisation reached Rp 151.6 trillion, compared with approximately Rp 135.1 trillion in the same period the previous year.
With this achievement, investment realisation in the first semester reached Rp 298.1 trillion, representing a 14.8 per cent increase compared with the first semester of 2015. This figure showed that investment realisation had reached 50.1 per cent of the full-year target of Rp 594.8 trillion.
Thomas welcomed the achievement amid numerous global challenges, including Brexit, which could negatively affect investor confidence. "This is an encouraging achievement. We are optimistic that the 2016 target will be met," he said.
"I believe the cabinet reshuffle carried out by the President was an extraordinary step," he said at a press conference at the BKPM building in Jakarta on Friday, 29 July 2016.
"So far, the response from investors and the market has been extremely positive. In my view, this helps improve investor sentiment."
Thomas added that investment realisation in the coming second semester would also be influenced by new policies introduced following the reshuffle. "We will also be monitoring the success of the tax amnesty programme," he said.
In addition, BKPM planned to intensify its promotion and facilitation of investment activities.
BKPM recorded that investment realisation in the second quarter of 2016 rose 12.3 per cent compared with the second quarter of 2015. During April to June, investment realisation reached Rp 151.6 trillion, compared with approximately Rp 135.1 trillion in the same period the previous year.
With this achievement, investment realisation in the first semester reached Rp 298.1 trillion, representing a 14.8 per cent increase compared with the first semester of 2015. This figure showed that investment realisation had reached 50.1 per cent of the full-year target of Rp 594.8 trillion.
Thomas welcomed the achievement amid numerous global challenges, including Brexit, which could negatively affect investor confidence. "This is an encouraging achievement. We are optimistic that the 2016 target will be met," he said.