Investors Postpone Investment Due to Rupiah`s Depreciation: BKPM

Jakarta, MINA — Several investors have put their investment plans on hold due to the rupiah`s depreciation against the US dollar, Antara News reported citing Chief of the Investment Coordinating Board (BKPM) Thomas Trikasih Lembong.

However, the postponement does not mean that they will cancel their investment plans, he remarked on the sidelines of the Investment Award 2018 here on Thursday.

“I think if they cancel (the investment plans), the rupiah`s exchange rate will not be the cause of the cancellation. Normally, they cancel investment plans, as they choose other countries as our competitors,” he pointed out.

If the trend of investment weakens when the rupiah depreciates against the dollar, the investors will surely put their investment plans on hold until the situation is more stable, he explained.

“Investment slows down due to postponement,” he noted.

Although the postponement will not have a significant impact on the related investors, it will significantly affect the government`s efforts to achieve the investment target, he stated.

“We will publish the realization of investment quarterly. If large investors postpone their investment plans until six months, for us, the quarterly figures could be very large,” he noted.

The appreciation of the US dollar has put pressure not only on the rupiah but also on the currencies of several developing nations.

“Since the trade war began, the currencies of all developing countries, including Argentina, Turkey, Pakistan, India, the Philippines and Indonesia, have come under high pressure,” he added. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)