Economy & Business

Investments Climate Is Still Limp
Friday, 26 August, 2005 | 10:04 WIB

TEMPO Interactive, Jakarta:Economists and analysts predict that global investment in Indonesia has not yet shown conclusive signal until the end of this year.

Standard Charters Analyst, Fauzi Ichsan stated, “No sign of improvement in short while. This because investors believes that recovery of investment climate is influence by laws, labors and infrastructure problems.

To redevelop all of the those will require long time period of time. We will need demanding rules from government to improve them. If necessary, he added, “The president himself has to give statement to the market in order to regain people trust about investment”.

According to him, to create healthy conducive investment environment, Bank Indonesia needs to raise interest rate above 10 percent. “This action will make Rupiah more attractive than other foreign currencies”, stated Fauzi. BI necessarily revised PBI number 7/14/2005 about The Rupiahs Limit Order and Foreign Currency Loan given by bank.

Government also needs to run privatization program and urgently raise up the price of BBM to reduce APBN’s deficit. “At least this year BBM price has to increase between 20-30 percent,” he said.

Chief of Mandiri Securities Research, Kahlil Rowter feels pessimist about the flows of investation to Indonesia this year. Since dollar necessities to pay out oil import by Pertamina and overall BBM consumption.

According to him, long term investment still gives positive sign. “Hence investment problem such as tax increase need to avoid”, he said

Kahlil asks the government to be more concern about the problems on equalizing the balance sheet report.