HKI Confident Indonesian Investment Will Continue to Grow Amid Currency Weakening - BCA Securities
The Indonesian Industrial Estate Association (HKI) believes that investment will continue to grow despite pressure on the rupiah exchange rate and volatility in both global and domestic financial markets.
Speaking in Jakarta on Monday, HKI General Chairman Akhmad Ma’ruf Maulana stated that the weakening of the rupiah and corrections in the stock market should be addressed proportionally, as they are part of the global economic cycle. “Indonesia has repeatedly faced various global economic challenges, ranging from the Asian financial crisis, the 2008 global crisis, the COVID-19 pandemic, to various global geopolitical upheavals. These experiences demonstrate that national economic resilience should not be measured solely by daily exchange rate movements or stock indices, but by the ability to maintain real economic activity, investment, production, and job creation,” Ma’ruf said.
The association assesses that Indonesia’s economic fundamentals remain a magnet for long-term investors due to a combination of advantages, including a vast market, abundant natural resources, and an ongoing downstreaming agenda, making it a strategic production base and market in Southeast Asia.
Furthermore, amidst global uncertainty, HKI is encouraging the government to continue accelerating structural reforms to maintain investment flows. The association believes the primary focus should not be on short-term market volatility, but on ensuring that investment can enter and be realised more rapidly.
According to HKI, regulatory simplification, accelerated licensing, synchronisation of central and regional policies, spatial planning certainty, energy availability, and improved infrastructure quality are more decisive factors for investors than financial market fluctuations. “Investors essentially seek three things: certainty, speed, and ease. When these three elements are provided consistently, Indonesia will remain competitive even as the world faces economic and geopolitical pressures,” Ma’ruf added.
HKI also expressed appreciation for the coordination between the government, Bank Indonesia, and financial authorities in maintaining financial system stability and enhancing the attractiveness of domestic assets. Such steps are considered vital for maintaining market confidence in the national economy. Additionally, HKI views the global economic slowdown as a potential opportunity for Indonesia to attract more investment, as many multinational companies are currently reviewing global supply chains and seeking investment locations that are more efficient, stable, and possess large markets.