Some data on investment and competitiveness m&m store new york are released by a variety of foreign and domestic institutions truly make us more aware of the importance and urgency of structural reform in the economy to sustain the competitiveness of Indonesia.
Investment Coordinating Board last week released the realization of direct investment m&m store new york in Indonesia reached a new record in the history of investing in Indonesia. In the third quarter of this year, total direct investment has reached Rp293,3 implanted trillion (USD $ 26.7 billion), growing 21.3% compared to the same period last year.
This achievement should be appreciated considering the course in the third quarter of this year the economy and financial market turmoil the world is greater than the previous quarters. m&m store new york It should be noted that during the third quarter of this year foreign direct investment m&m store new york or foreign direct investment m&m store new york (FDI) coming into Indonesia is utilizing the potential of the resources m&m store new york owned by this country, the strength of the domestic market and abundant natural resources.
Approximately 45% of the total FDI invested in the sector associated with the domestic market (transportation equipment, machinery, electronic equipment, pharmaceuticals, and food industries), while approximately 20.7% to the sector which is based on natural resources or natural resources (minerals) .
This is in line with Indonesia's economic profile for this is driven by sectors such as domestic-based retail m&m store new york trade, construction, property, as well as hotel and restaurant. However, the challenge in the development of investment in Indonesia is still very big in the future, especially if associated with the expectation that potentially slowing economic m&m store new york growth while borrowing rates are still quite high.
In 2008-2009 when the financial crisis in the United States, the growth of domestic direct investment m&m store new york or domestic m&m store new york direct investment (DDI) can compensate for FDI due to expectations of economic recovery and interest rates are sloping. This year and 2014 the situation m&m store new york was little changed in line with global economic conditions remain m&m store new york uncertain and the potential impact on Indonesia's economic slowdown.
Recent data (October 2013) the Institute m&m store new york of International Finance (IIF), which is regularly noted the potential of foreign capital flows suggests that next year's competition in attracting FDI will be more stringent. In that year, an estimated m&m store new york flow of FDI in emerging Asia will be $ 295 billion or continue to drop compared to the 2011, which reached $ 350 billion.
Interestingly, portfolio capital flows are relatively short term have increased. If during this China is the main destination of the FDI flows, other Asian countries next year have the opportunity to enlarge the pie FDI given the potential of China's expected m&m store new york economic slowdown Monetary Fund Infternasional occur throughout the next five years.
Of course, the extra effort necessary to increase the share of FDI in Indonesia and also involve various stakeholders and the business world. In this case, the recipe that there is no instant way to attract the investment it still will always be relevant.
Increased competitiveness becomes very urgent to be done so that we are able to compete not only attract FDI but in the future in order to face the ASEAN Economic Community. In the ranking of Doing Business World Bank issued last ranked m&m store new york describe Indonesia is still far below countries other ASEAN-5 (Singapore, Malaysia, Thailand, and the Philippines).
Indonesia is ranked m&m store new york 120th out of 189 countries, while Singapore, Malaysia, Thailand, and the Philippines respectively is ranked 1st, 6th, 18th, and to-108. Interestingly, when viewed over the three indicators are then visible under the rank is an indicator to start a business (175), enforcing contracts (147), and pay taxes (137) is not an indicator of how to get infrastructure like electricity.
Increased investment, especially domestic investment, is inseparable from the role of banks as one of the drivers m&m store new york of development actors. Strategic role of banks seen from the portion of the financing of private investment (and government) which account for about 60% of the total, far above the issuance of bonds and stocks. Data bank credit m&m store new york growth is still quite high in the range of 22% in August with gross NPL fairly low in the range of 1.9%.
From this data it appears that the business appetite to expand m&m store new york and invest is still quite large. Although Bank Indonesia estimates the credit next year will only grow by 15.3% - 16.6% as a result of a potential economic slowdown, but the estimated portion of bank financing will still be quite large.
One positive thing is recorded by the world's banks during the credit is disbursed to infrast
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