DIGIVESTASI - Economists expect cumulative investment realization to remain strong in the 2024 election year, in line with President Jokowi's target of IDR 1.65 trillion. PT Bank Mandiri Tbk (BMRI) Chief Economist Andry Asmoro believes that investment growth will continue, but does not deny that investment tends to decline in election years.

"So far, we have seen that during the political year, investment has decreased. "But if it is broken down, the investment decreases," he said during the Online Media Meeting on Global and Indonesian Economic Development 2023, Tuesday (December 19, 2023). In his presentation, the average growth rate of foreign investment (FDI) before the election year was quite high, namely 25.3% / year. Meanwhile, FDI entering the election year (2004, 2009, 2014 and 2019) decreased by an average of 6.6% compared to the year before the election.

In contrast to foreign investment, domestic investment continues to grow positively both before and during election years. Asmo explained, the average growth rate of domestic investment before the election year was 28.6%. Meanwhile, in the election year, it may grow but slows down, which amounted to 25.3%.

"The government should step up efforts to avoid a repeat of the cycle of declining foreign investment during election years. At least the decline in foreign investment is not too deep so that investment can grow relatively stable in 2024," he explained. On the occasion, Director of Treasury and International Banking of Bank Mandiri Eka Fitria stated that investment efficiency is one of the pillars of economic growth to maintain a healthy level above 5%.

Although it only reached below 5% in the third quarter of 2023, Eka said the Indonesian economy was quite resilient. "The existence of a number of investments related to infrastructure and relatively healthy domestic consumption will certainly remain one of the drivers of Indonesia's economic growth," she said. Meanwhile, Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said that his party will focus on downstream investment, in order to create domestic added value. At least 30% of the investment target or equivalent to around Rp 495 trillion will come from downstream.

"To achieve the target of Rp 1,650 trillion, how? "At least there is a 30% effort to encourage the downstream sector," he said during a discussion, Monday (11/12/2023).