The chairman of the Investment Coordinating Board (BKPM), Thomas Trikasih Lembong, has said that several investors had informed the board that they would be postponing their investment plans because of the rupiah depreciation.
Thomas said that the weakening rupiah, which was hovering at Rp 14,000 per US dollar, had caused the investors to doubt the prospects of investing in the country.
“Yes, they postponed [their investment]. They are waiting for the fluctuating rupiah to become more stable,” Thomas said in Jakarta on Thursday, as reported by kompas.com.
He said that postponing investment for six months was common among investors, as they needed to assure that their funds were safe. However, such a postponement was a big deal for Indonesia, because it would affect economy’s performance over the next six months.
Thomas added that some investors had canceled their planned investment, but not because of the rupiah depreciation and instead, because of the worsening trade war between the United States and China.
“They prefer to invest in other countries, our competitors,” he said.