HIPMI NTB: Entrepreneurs Now Prefer Real-Sector Investments

Entrepreneurs in West Nusa Tenggara (NTB) are becoming more cautious about placing investments in the capital market amid a global economy regarded as still unstable. Lalu Fatahillah Prawira, Secretary-General of the NTB branch of the Himpunan Pengusaha Muda Indonesia (HIPMI), said the world economy, affected by wars, dollar fluctuations, and the rising and falling price of gold, is driving businesses to favour investments in the real sector.

Previously, they were active in stock investments, particularly when the economy was assessed as strong and stable. But in the last two to three years, economic uncertainty has made investments in the capital market seem more risky.

‘We used to invest in shares too. When we saw the economy was good, we took the good stocks. But now there is no certainty,’ he said recently.

He cited the unpredictable fluctuations in gold price and movements in the dollar. In addition, the global situation also affects the investment climate in Indonesia, including some large companies and investors moving investments to other countries seen as more conducive.

According to Fatahillah, investors now weigh many factors before committing capital, from ease of licensing, to national stability, to labour conditions.

‘Many investors are moving to countries where licensing is easy, the country is conducive, and its workers are also conducive. Those are the things to watch,’ he said.

He also said Labour Day momentum should not merely be a forum for workers’ demands, but a joint moment to consider solutions to retain and attract investors to continue investing in Indonesia.

‘There should also be consideration of how to attract and retain investors,’ he added.

Fatahillah emphasised that entrepreneurs’ caution in investing does not stem from a lack of understanding of capital market investments, but from considerations of the global situation deemed unsettled due to war and other economic factors.

Therefore, some entrepreneurs are now preferring to place capital in the real economy sector, which is seen as having clearer certainty than speculative investments in the capital market.