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INVESTORS POSTPONE PLANS OVER WEAKENING RUPIAH, SAYS BKPM
The chairman of the Investment Coordinating
Board (BKPM), Thomas Trikasih Lembong, has said that several investors had
informed the board that they would be postponing their investment plans because
of the rupiah depreciation.
Thomas said that the weakening rupiah, which
was hovering at Rp 14,000 per US dollar, had caused the investors to doubt the
prospects of investing in the country.
“Yes, they postponed [their investment]. They
are waiting for the fluctuating rupiah to become more stable,” Thomas said in
Jakarta on Thursday, as reported by kompas.com.
He said that postponing investment for six
months was common among investors, as they needed to assure that their funds
were safe. However, such a postponement was a big deal for Indonesia, because
it would affect economy's performance over the next six months.
Thomas added that some investors had canceled
their planned investment, but not because of the rupiah depreciation and
instead, because of the worsening trade war between the United States and
China.
“They prefer to invest in other countries, our
competitors,” he said.
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