Fri, 07 Oct 2011

Jakarta (ANTARA News) - The Capital Investment Coordinating Board (BKPM) is optimistic realization of investment in 2011 would reach Rp240 trillion as more investors would come to the country, its chief, Gita Wirjawan said here on Thursday.

He said in the months ahead it was believed more investors would come to invest in the country.

He said based on the results of his meeting with investors in Turkey recently investors believed Indonesia had good economic fundamentals.

"I am optimistic we can meet the target," he said.

He said the government has also rewritten several laws and regulations including providing a tax holiday and revising Presidential Decree Number 13 of 2010 on cooperation between the government and business entities in infrastructure provision and the law on land acquisition.

He said the target could also be met by refining policies linked to investment, improving services and providing various fiscal facilities for investors.

He said future investment prospect in Indonesia was bright, supported by among others the country`s demographic strength.

"But we would need US$50 billion in five years for infrastructure development," he said.

Saratoga Group CEO Sandiaga S Uno meanwhile said foreign funds that entered the Indonesian capital market had not affected real sector funding.

"I think connectivity must be built between the real sector and the stock exchange because the stock exchange index has risen steeply along with the inflow of foreign capital. This must be made into an instrument," he said.