BKPM: Investment Increases but Society Buy Power Drops

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

5166
5166

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.

News Comment

Today's Industry

Minister of Finance Sri Mulyani Indrawati (Photo by PR of Cabinet Secretariat)

Senin, 21 Juni 2021 - 22:37 WIB

Finance Minister Pushes for Speeding Up Regional Fund Usage

Realization of funds transferred to the regions for COVID-19 management needs to be accelerated, Minister of Finance Sri Mulyani Indrawati has said.

vaccine arrives at Soekarno Hatta International Airport in Tangerang, Banten

Senin, 21 Juni 2021 - 21:40 WIB

10 Million Sinovac COVID-19 Vaccine Bulks Arrive in Indonesia

As many as 10 million Sinovac-manufactured COVID-19 vaccines in the form of raw material or bulk Sunday (20/06) arrived at Soekarno-Hatta airport in Tangerang city, Banten province.

President Jokowi inspects mass COVIID-19 vaccination at Bogor Railway Station, Thursday, (17/06). Photo by: BPMI of Presidential Secretariat.

Senin, 21 Juni 2021 - 20:30 WIB

Minister Orders KAI to Provide COVID-19 Random Tests at Commuter Line Stations

Minister of Transportation Budi Karya Sumadi has ordered state railway company PT KAI to provide COVID-19 random tests for passengers of Greater Jakarta commuter line (KRL Jabodetabek).

Vice President Ma’ruf Amin. (Photo by: Vice President’s Secretariat)

Senin, 21 Juni 2021 - 19:23 WIB

VP Ma’ruf Amin: 40% of Gov’t Goods, Services to be Procured from Local MSMEs

The Government continues to promote the use of domestic products through allocation of Micro, Small, and Medium-sized Enterprises (MSMEs) products of at least 40 percent for the Government’s…

Vice President Ma’ruf Amin during Closing of National Conference on Public Security and Defense System, at Sentul, West Java province, Friday (18/6). (Photo: Vice President Secretariat)

Minggu, 20 Juni 2021 - 19:24 WIB

VP Calls for Increased Role of Security, Defense System Amid Global Challenges

The role of security and defense system should be strengthened to protect the entire nation, state and all citizens in facing the increasing global challenges, Vice President Ma’ruf Amin has…