This was stated by Josua Pardede, chief economist at Bank Permata Indonesia Economic Report 2023 on Wednesday (July 2nd, 2024) especially from the Asian side.
“These (India and Vietnam) are two countries that, if we look at the real investment side, are quite competitive with Indonesia,” Josua explained.
However, looking at the fundamental outlook since the last pandemic, institutions such as S&P Global Ratings, Moody's and Fitch Ratings tend to continue to maintain Indonesia's ranking in the ratings. Investment grade.
Josua also said that Indonesia is expected to have remained accommodative from a monetary and fiscal perspective over the past two to three years.
“So there is hope that this will also give foreign investors a certain level of confidence,” he continued.
Josua continued that there is a very normative and national indication that investors will be inclined to behave before the 2024 election let's wait and see. However, after the election, investments tend to increase again.
Elections are now also taking place in most countries around the world, so global political developments this year are expected to have an impact on the global economic outlook, including investment.
It is also worth mentioning the implementation of the implementing provisions of the Job Creation Law, taking into account Indonesia's vision for 2045, which requires growth to be above 5%, i.e. around 6-7%.
“That’s why optimizing investments, of course with the job creation law, is a good starting point,” he said.
Josua also said that it depends on how the regulations are implemented and will look at tax reforms and other reforms that are expected to make a positive contribution to future investment prospects.
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