ID :
18883
Wed, 09/10/2008 - 23:39
Auther :
Shortlink :
https://www.oananews.org//node/18883
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GOVT: FOREIGN DIRECT INVESTMENT GROWTH IN 2008 MAY NOT REACH 15 PCT
Jakarta, Sept 10 (ANTARA) - Trade Minister Mari Elka Pangestu predicted foreign direct investment growth this year may not reach 15 percent in view of sluggish global developments.
"Perhaps it will be a little below 15 percent," she said. However she believed it would be above ten percent or higher than last year's.
She said last year's investment was nine percent of the gross domestic product and in the first semester this year it already reached 12.5 percent.
She said there had been no trend of a decline in foreign investment or cancellation of investment plans and therefore she was still optimistic the growth could still meet the target which was set at 15 percent this year.
She said investors came with mid-term and long-term objectives and because of the country's growing economy.
She said some investors came to participate in the country's infrastructure development program and others to relocate their businesses because of policy changes in China and Vietnam.
Regarding the drop in the country's ranking for doing business announced by the International Financial Corporation recently the minister said that one of the factors behind it was decentralization of the licensing system. She however said that improvement of the investment climate would continue.
"In the future it will be better. Do not only see the number of days needed to start a business. Under the decentralization system problems do happen but we will continue to make improvements. We have improved the taxation system, the flow of goods and the customs system," she said.
"Perhaps it will be a little below 15 percent," she said. However she believed it would be above ten percent or higher than last year's.
She said last year's investment was nine percent of the gross domestic product and in the first semester this year it already reached 12.5 percent.
She said there had been no trend of a decline in foreign investment or cancellation of investment plans and therefore she was still optimistic the growth could still meet the target which was set at 15 percent this year.
She said investors came with mid-term and long-term objectives and because of the country's growing economy.
She said some investors came to participate in the country's infrastructure development program and others to relocate their businesses because of policy changes in China and Vietnam.
Regarding the drop in the country's ranking for doing business announced by the International Financial Corporation recently the minister said that one of the factors behind it was decentralization of the licensing system. She however said that improvement of the investment climate would continue.
"In the future it will be better. Do not only see the number of days needed to start a business. Under the decentralization system problems do happen but we will continue to make improvements. We have improved the taxation system, the flow of goods and the customs system," she said.
