Will Sluggish Investment Trends Last Until Late 2020?

Summary

The investment realization in the second quarter of 2020 fell 4.3 percent to Rp 191.9 trillion from a year earlier, according to The Investment Coordinating Board (BKPM) data. The figure even dropped 8.9 percent from Rp 210.7 trillion in the previous quarter. "The result is indeed under expectation because we are targeting more than Rp 200 trillion in the second quarter," said the head of BKPM, Bahlil Lahadalia, on Tuesday, July 22, 2020.

Bahlil argued that the COVID-19 pandemic was behind the decline in investment. "This is a tough time," he said. Even so, Bahlil did not revise the investment target set at Rp 817.2 trillion, which was changed in May 2020 from Rp 866 trillion in early 2020. According to BKPM's study and evaluation of investment realization in the first half, Bahlil is optimistic that the achievement in the second half would be better. The investment in the first semester rose 1.7 percent to Rp 402.6 trillion from the same period a year earlier.

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