Bogor: President Joko 'Jokowi' Widodo has reiterated that officals should be able to eliminate red tape in order to boost investment in export-oriented industries.
"Investment in export-oriented and import-subsitution industries should be given permits as quickly as possible," President Jokowi told a cabinet meeting here on Monday.
"This issue is still hindering our investment growth," President Jokowi noted.
Based on a report from the Investment Coordinating Board (BKPM), investment realization reached Rp195.1 trillion in the first quarter of 2019. It grew by 5.3 percent compared to the same period in 2018.
Domestic Direct Investment (DDI) reached Rp 87.2 Trillion in January-March 2019. DDI increased by 14.1 percent compared to the same period last year.
Foreign Direct Investment (FDI) reached Rp 107.9 Trillion in the first three months of 2019. FDI decreased by 0.9 percent compared to the same period last year.
According to a report from Bank Indonesia (BI), a general softening of national economic growth has occurred during the second quarter of 2019 as a corollary of declining export performance.
The recent escalation of international trade tensions has undermined export performance in Indonesia due to restrained global demand and lower commodity prices despite relative improvements for a number of commodities, including chemicals, iron and steel, coal as well as vegetable oil.
Non-building investment has thus far failed to increase significantly as a consequence of flagging exports notwithstanding positive building investment growth. Meanwhile, consumption is expected to pick up on the back of maintained public purchasing power and consumer confidence. Limited domestic demand gains have fed through to lower imports. Moving forward, efforts to stimulate domestic demand shall be increased in order to mitigate the adverse impact of global economic moderation stemming from international trade tensions.