Jakarta (Antara Bali) - President Joko Widodo expressed his belief that
investment grade ratings that have been awarded to the country by
international rating agencies so far would boost investment and capital
inflows.
"This will create inflows of money, capital, and investment," he said in an interview with ANTARA here on Thursday.
He stated that he believed the capital inflow would not only stop
at portfolio or shares in the stock market but will also go to the real
sector.
"We will push the flow to the real sector. They may build
factories, industrial zones, or infrastructure that we need to open as
much employment as possible for the people," he remarked.
He said that the investment grade ratings reflected the
international confidence in Indonesia, especially with regard to the
ease of investing in the country.
"This is important for us to continue to conduct reform, simplify
licensing procedures, provide more infrastructure that would determine
our competitiveness, and overcome high cost at sea ports, airports, and
roads," he said.
Regarding the impact of investment for ordinary people, Jokowi
explained that with the inflow of capital and investment money
circulation in regions would be bigger and open up employment for the
local people.
"I think people will enjoy their positive aspects and job
opportunities, and with bigger money circulation, welfare will be
improved," he revealed.
Jokowi said that bigger money circulation in the regions would increase regional economies.
"There will be job opportunities which, in combination with
bigger money in circulation, will in turn increase peoples buying
power," he remarked.
He said that the buying power of the people for local
commodities would rise to make farmers able to sell their produce at
better prices and so will the fishermen with their catch.
"The chain effect will be like that. People often ask about the
connection between investment and poverty. That is the connection.
Investment will open more jobs and increase money in circulation," he
pointed out.
On the occasion, Jokowi expressed his gratitude that Indonesia
has been able to receive investment grade ratings from various
international agencies.
"After Fitch Rating, there are Moodys, S&P, and then UNCTAD
that has also increased its rating on Indonesia from eighth to fourth
after US, China, and India, he explained.
The United Nations Conference on Trade and Development has put
Indonesia in the fourth rank as a prospective investment destination in
2017-2019. The position is higher than in 2016, when it was at the
eighth rank.
The result of UNCTADs business survey on a number of multinational
companies showed that Indonesia received 11 percent responses out of the
total business executives being surveyed.
The first rank went to the US collecting 40 percent responses,
followed by China with 36 percent, and India with 20 percent.
Thailand was ranked fifth after Indonesia, while the Philippines
was at 10th, Vietnam at 12th, and Singapore at 13th position.(*)
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