Jakarta: Minister of Finance Sri Mulyani Indrawati is optimistic that trade war between the United States (US) and China will have an impact in flowing investment into Indonesia because the country has all the conditions needed to become an investment place.
These conditions include infrastructure, regulatory simplification, increased ease of doing business and Indonesia is also a large market.
This was stated in an interview with Bloomberg TV hosted by Tom Keene and Nejra Cehic when Minister of Finance attended the Bloomberg Emerging & Frontier Forum in the city London early this week.
"We also have all the necessary condition for investment to inflowing to Indonesia whether in the form of infrastructure being developed in the past five years, simplification and deregulation," the Ministry of Finance's quoted the former World Bank managing director as saying.
"So, ease of doing business has been improved. And we have also a big market in itself. So, we have an attractiveness in the form of our own economy, a macro stability as well as prudential policy which is being implemented constantly for Indonesia and also reputation that we improve our ease of doing business and investment climate. We also aggressively communicating this policy," she explained.
She believes, Indonesia's economic growth in 2019 can still grow in the range of 5.3 percent despite of the global impact of this trade war. However, with various risks that must be faced, such as declining exports, imports and commodity prices, Indonesia targets more moderate growth within the range of 5.17 percent to 5.2 percent.
"We are still aiming for 5.3 percent," she remarked.
"We see that the implication of this trade war and weakening global economy in the form of exports. We're just now going into a negative zone, so we have a contraction on exports in the first quarter. And that's create a dynamic also with the import which is also going down and the commodity price. Our projection for this year within 5.17 percent to 5.2 percent," she explained.