Domestic investment predicted to be higher than FDI
Jakarta (ANTARA News) - Indonesia`s Capital Investment Coordinating Board (BKPM) predicts the growth of domestic capital investment in the country would be higher this year than that of foreign directl investment (FDI).
Its chief, Muhammad Lutfi, said after signing a memorandum of understanding with HSBC here on Tuesday that this year FDI in the country was projected to grow only 20 percent.
"I think the growth of domestic capital investment will be better than that of foreign capital investment," he said.
He said last year foreign capital investment in the country grew more than 40 percent but this year he was pessimistic it would reach that level, predicting that its growth would possibly drop 50 percent to reach only 20 percent.
"The domestic capital investment meanwhile will grow above the level of foreign capital investment," he said.
He said BKPM had so far calculated growth based upon realization of projects. As an example he said investment in hotels and factories would be calculated based upon buildings that had been constructed.
"So what counts is the realization. So current projects are realization of BKPM approvals given in 2006 or 2007," he said.
He said realization of investment approvals given this year would only be seen around 2012 or 2013.
He said although investment growth was not too high this year compated to last year in view of the current global economic crisis the country`s economy was still better than that of other Asian countries.
In view of that he said he was optimistic realization of domestic capital investment in 2009 would surpass that of foreign capital investment. (*)
Its chief, Muhammad Lutfi, said after signing a memorandum of understanding with HSBC here on Tuesday that this year FDI in the country was projected to grow only 20 percent.
"I think the growth of domestic capital investment will be better than that of foreign capital investment," he said.
He said last year foreign capital investment in the country grew more than 40 percent but this year he was pessimistic it would reach that level, predicting that its growth would possibly drop 50 percent to reach only 20 percent.
"The domestic capital investment meanwhile will grow above the level of foreign capital investment," he said.
He said BKPM had so far calculated growth based upon realization of projects. As an example he said investment in hotels and factories would be calculated based upon buildings that had been constructed.
"So what counts is the realization. So current projects are realization of BKPM approvals given in 2006 or 2007," he said.
He said realization of investment approvals given this year would only be seen around 2012 or 2013.
He said although investment growth was not too high this year compated to last year in view of the current global economic crisis the country`s economy was still better than that of other Asian countries.
In view of that he said he was optimistic realization of domestic capital investment in 2009 would surpass that of foreign capital investment. (*)