REPUBLIKA.CO.ID, JAKARTA -- Chairman of the Investment Coordinating Board (BKPM), Thomas Lembong, believed that foreign investment inflows will recover after the general elections. Indonesia to hold general elections on April 17, 2019.
"On the cycle side, general investment or foreign direct investment (FDI) will recover in 2019," he stated, after attending the presentation of World Bank Quarterly Report here, on Thursday.
Investment usually slows down ahead of general elections as investors await political developments in the country, he noted. Afterwards, investment climate will return to normal, and investors will again invest in prospective sectors, he added.
"When we look at the history, in the past 20 years, investment always slowed down ahead of general elections and recovered sharply after the general elections," he remarked.
He warned that the economic challenges in 2019 will be as heavier as in 2018. Global conditions will have the potential to disrupt investment performance, he revealed.
"After all, we must go ahead with our reforms and work hard to improve our competitive edge to be able to compete with Vietnam, Thailand, and Malaysia," he explained.
Earlier, Lembong remarked that FDI in the country dropped to the lowest level in the last four years. FDI in the country, which reached US$20 billion, is expected to fall to $11-13 billion this year.