Realized investment into Indonesia will drop to 9 percent this year, from the previous estimate of between 10.7 percent and 11.2 percent on the back of global economic slow down, the Investment Coordinating Board (BKPM) says.
BKPM head M. Lutfi said Saturday based on April's investment data, Indonesia was now feeling the pinch of the global crisis in terms of realized investment.
"We thought we could survive (the crisis). But seeing April's data, we are hit (by the crisis)," he told reporters, adding that the crisis would likely bring investment to deplete in 2011 or 2012 as investors chose not to make any business commitment during crisis.
Lutfi added that the telecommunications sector would be the most lucrative sector this year, as internet users in Indonesia tripled each year in the past three years in Java and Sumatra.
"I still think Indonesia has much potential (to attract investment). We just need to tweak it a little," he said.
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