BKPM: Investment Increases but Society Buy Power Drops

By : Aldo Bella Putra | Thursday, August 03 2017 - 15:15 IWST

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INDUSTRY.co.id - Jakarta- BKPM Chairman Thomas Lembong said Indonesia's current economic condition is still calculating the realization of investment growth with indicators on the impact on employment, to increase income and the ability of people's purchasing power is not appropriate.

It seems to him to be a mystery. However, it should be a big question. Moreover, in his notes the great influence remains to be seen from the government as a regulator.

"This should be an explanation, why can investment continue to rise but the purchasing power even down, should investment increase income rose, so demand rises, but this is a mystery," said Thomas in Jakarta, Thursday (4/8/2017).

In its analysis, the accumulated realization of investment in six months (first semester) of 2017 is Rp 336.7 trillion or 12.9 percent higher than the same period in the previous year which amounted to Rp 298.1 trillion.

The retail industry,as a picture of people's purchasing power, falls with growth only 3 percent or lower than normal conditions of 12-14 percent while inflation per July was 3.88 percent (year on year / yoy).

"It means that growth (retail) is below inflation, so net inflation may actually shrink," said Thomas.

He also insists the government should always publish the right policies in every sector of the economy that exists. Meanwhile, the issuance of regulation has been the emphasis of President Jokowi since some time ago. Even the two ministries are called directly in the cabinet meeting in order to re-evaluate the regulations already issued.

"If our regulations are inconsequential, and the sudden discharge without a transitional period, the socialization will hit the business beliefs and will create uncertainty, anxiety. That makes the business world more business-oriented to reduce overtime, hesitate to get out of money Train the workers, if later there is no order it is useless," he concluded.

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