Jakarta – West Java still being the favourite province for the Investors, both International and Domestic, to invest their money in the last 2015. This fact was revealed during the National Dialogue that was held by the Financial Services Authority (OJK) along with Bisnis Indonesia Magazine with the theme “Improving The Role of Financial Sector in Accelerating Local Economic Development” in Singorsari Poolside, Borobudur Hotel, Lapangan Banteng Street, Jakarta, Monday (29/02/16).
During the dialogue, The Head of Indonesian State Bank (BNI), Ryan Kiryanto said during his presentation entitled “Indonesia Economic Review” that the amount of realised direct investment in West Java is reaching Rp 103,1 Trillion exceeding the 2015 target which is only Rp 95 Trillion.
“East Java is the province with the highest amount of domestic investment in 2015, with the amount of investment reaching Rp 35,5 Trillion, which followed by West Java, DKI Jakarta, and Central Java. As for Foreign Direct Investment (FDI), West Java is on the first place with the amount of foreign direct investment reaching Rp 76,8 Trillion,” said Ryan during the Dialogue which also attended by the Governor of West Java, Ahmad Heryawan (Aher) as one of the speaker.
According to the data of 2016 provided by Capital Investment Coordination Board (BKPM), West Java gains Rp 103,1 Trillion of investment in total which is consisting of Foreign Direct Investment in the amount of Rp 76,8 Trillion and Domestic Direct Investment in the amount of more than Rp 26,2 Trillion. While East Java on the second position with Rp 70,2 Trillion of investment in total which is consisting of Foreign Direct Investment in the amount of Rp 34,7 Trillion and Domestic Direct Investment in the amount of more than Rp 35,4 Trillion. And the third position is occupied by DKI Jakarta with Rp 63,9 Trillion of investment in total which is consisting of Foreign Direct Investment in the amount of Rp 48,4 Trillion and Domestic Direct Investment in the amount of more than Rp 15,5 Trillion.
Meanwhile, during an interviewed took place after the dialogue had ended, Aher is hoping that the National Economic Activity, especially in West Java keeps improving as well as the flow of both FDI and DDI. According to Aher, it must be supported by the low BI rate. As we know that today, as for February 18, 2016, the BI rate is on the level of 7.00% (source: www.bi.go.id).
“The impact of the high BI rates is that the investment in Indonesia is deterred. This caused a ripple effect which are low production and consumption level. Plus, the interest rates are also worried to effect the ability of consumption. We could imagine if our consumption rate is low, and on the same time our investment level is deterred, then the economic growth will be low as well,” said Aher after the dialogue.
Beside affecting the economic growth, Aher thought that the high interest rate will also affected the people’s sympathy towards the national bank. “it would be dangerous for the people’s nationalism. If the interest rate is high, it is possible for the International Bank to gain much costumer in our country. It could cause our national bank to be left by our own people,” said Aher.
Therefore, Aher demanded the Indonesian Bank (BI) and all of the contributing party to study the reason behind this high interest rate. Because, if it is compared by the other Asean country, BI rate is the highest.
This dialogue event was opened by the Village Minister, PDT & Transmigration, Marwan Jafar with his paper entitled “Revitalising the role of Financial Sector in Accelerating the Development of behind region”, The dialogue was also attended by Board Commissioner of OJK, Muliaman D Hadad as the keynote speaker. And also attended the dialogue as a speaker was Board Commissioner of OJK Nelson Tampubolon, Vice-Mayor of Pasuruan, East Java, Raharto Teno Prasetyo, The Head of APINDO, Haryadi B. Sukamdani. Also present in the dialogue, The Head of Bisnis Indonesia Redactor, Arif Budisusilo as a moderator, the national banks representatives and all of the dialogue attendance.