The Time to Invest Is Now, Says Kalla
Teguh Prasetyo & Sally Piri
Despite the slowing world economy, Vice President Jusuf Kalla on Wednesday encouraged businesses not to delay long-term investments, especially projects that would be completed in two to three years and could benefit from a recovery boom once the global financial turmoil subsides.
Kalla said that now was the best time to invest as the prices of everything from steel to machinery have fallen as much as 50 percent from last year.
“I suggest that businesspeople invest at the present time, especially in long-term projects that will take two or three years to develop,” Kalla said at the 2008 Investment Awards ceremony, which was held at his office by the Investment Coordinating Board, or BKPM.
Kalla said that the business climate in Indonesia was still attractive for foreign companies, citing Korean steel firm Posco, which plans to build a $5 billion plant in Cilegon, West Java Province.
The vice president said he met with both Posco executives and the board of directors of state-run PT Krakatau Steel on Tuesday night and encouraged Posco to start building its plant immediately. He said the timing would be advantageous for the company since the price of steel is far below its highs.
“If we build now, projects will be completed within the next two or three years, and in the same time the world economy should be booming again and companies will make more profits than under current conditions,” Kalla said.
He also urged governors to improve the investment climate in their provinces by improving services to businesses applying for permits.
“With high-quality services at the local administrative level, investment will improve,” he said.
Muhammad Lutfi, chairman of BKPM, said that the government would continue to encourage domestic and foreign investment in labor-intensive projects in anticipation of massive layoffs next year.
“In addition to the 650,000 workers already involved in a number of investment projects started from January through November,” Lutfi said, “the government plans to allow more investments that will in turn involve more workers.” He added that the projects must improve the economic standing of local people.
Indonesia, however, needs to improve the quality of its workforce as most workers are only high school graduates and earn wages in line with their limited education.
According to BKPM data, Jakarta had the most workers employed in projects targeted for investment - about 80,000 - in the 11 months through November.
BKPM also reported that the number of new projects funded by domestic investors from January to November increased to 210 from 148 during the same period last year.
Despite the slowing world economy, Vice President Jusuf Kalla on Wednesday encouraged businesses not to delay long-term investments, especially projects that would be completed in two to three years and could benefit from a recovery boom once the global financial turmoil subsides.
Kalla said that now was the best time to invest as the prices of everything from steel to machinery have fallen as much as 50 percent from last year.
“I suggest that businesspeople invest at the present time, especially in long-term projects that will take two or three years to develop,” Kalla said at the 2008 Investment Awards ceremony, which was held at his office by the Investment Coordinating Board, or BKPM.
Kalla said that the business climate in Indonesia was still attractive for foreign companies, citing Korean steel firm Posco, which plans to build a $5 billion plant in Cilegon, West Java Province.
The vice president said he met with both Posco executives and the board of directors of state-run PT Krakatau Steel on Tuesday night and encouraged Posco to start building its plant immediately. He said the timing would be advantageous for the company since the price of steel is far below its highs.
“If we build now, projects will be completed within the next two or three years, and in the same time the world economy should be booming again and companies will make more profits than under current conditions,” Kalla said.
He also urged governors to improve the investment climate in their provinces by improving services to businesses applying for permits.
“With high-quality services at the local administrative level, investment will improve,” he said.
Muhammad Lutfi, chairman of BKPM, said that the government would continue to encourage domestic and foreign investment in labor-intensive projects in anticipation of massive layoffs next year.
“In addition to the 650,000 workers already involved in a number of investment projects started from January through November,” Lutfi said, “the government plans to allow more investments that will in turn involve more workers.” He added that the projects must improve the economic standing of local people.
Indonesia, however, needs to improve the quality of its workforce as most workers are only high school graduates and earn wages in line with their limited education.
According to BKPM data, Jakarta had the most workers employed in projects targeted for investment - about 80,000 - in the 11 months through November.
BKPM also reported that the number of new projects funded by domestic investors from January to November increased to 210 from 148 during the same period last year.