Coronavirus outbreak will not affect Chinese investment in Indonesia

Jakarta Head of the Investment Coordinating Board (BKPM) Balil Lahadalia expressed optimism that the Wuhan coronavirus outbreak would not impact China’s investment in Indonesia.

“We are upbeat about the coronavirus outbreak being handled soon. This (outbreak) has made everybody anxious. Hopefully, it would not affect China’s investment in Indonesia,” Lahadalia told the press after the signing of a memorandum of understanding between BKPM and the Indonesia Stock Exchange here on Tuesday.

Lahadalia noted that the outbreak had as yet to have a significant impact on the investment.

China is the second-largest investor in Indonesia, overtaking Japan’s position.

The board will gauge the impact of the virus outbreak in February after it witnessed a normal trend of investment despite the pandemic in January.

“I think the BKPM has yet to see the impact of the coronavirus outbreak on the realization of investment in Indonesia,” he reiterated.

Meanwhile, President Director of the Indonesia Stock Exchange Inarno Djajadi stated that in the short term, the outbreak has affected investment in the stock market.

Moreover, this comes in close heels to China’s statement that the coronavirus spread would affect the country’s economy, which would furthermore impact the global economy.

“However, we have to bear in mind that it is not first time that a virus of this form has stricken. Earlier, we had bird flu, SARS, and others. History has demonstrated that it has affected the economy, but hopefully, not in a long term,” Inarno noted.

The Jakarta composite index on Tuesday morning opened lower amid market anxiety over the coronavirus outbreak.

The Jakarta Composite Index (IHSG) plunged 22.09 points, or 0.37 percent, to 6,110.22 points at opening, while the index of the 45 prime stocks, or LQ45 index, declined 6.21 points, or 0.62 percent, to 997.58.

Source: Antara News