The International Monetary Fund (IMF) predicts that economic growth this year will be 3.2 percent lower than last April’s prediction of 3.3 percent. Whereas next year it is predicted that economic growth will increase 3.5 percent, lower than the previous estimate of 3.6 percent. The IMF also revised the economic growth of the ASEAN countries to 5 percent in 2019 and 5.1 percent in 2020. This figure was 1 percent lower than projected last April. Related experts say the main risk factors for the global economy are developments that raise issues – including further US-China tariffs, US car rates, or Brexit without approval – these reduce confidence, expand investment, divert investments to supply globally, and are very slow global growth below the baseline. Apart what about Southeast Asia and especially Indonesia. That is the most important question for the people of the world who are looking at Indonesia as a new direction for economic growth and strengthening the wealth of their companies.
On a macro scale, the last time a foreign investor entered Indonesia was the capital market. Along with the strengthening of the rupiah against the United States (US). While on a micro scale, many things were obtained from the analysis of global observers, various potentials available in Indonesia are still not reached by investors, also because of limited access to information on potential, trade, socio-economic and policy of the National Government and Regional Governments. Indonesia is still attractive for foreign investors who want to invest compared to other ASEAN countries such as Thailand and Malaysia. Determining factors that have a positive influence include other factors that are also being considered by investors for Indonesia. Legal certainty and professional public service delivery. Local people’s acceptance of investments that provide employment opportunities and increase purchasing power. But on the other hand, some things are still a common obstacle such as an increase in production costs in Indonesia, such as labor costs, rising fuel prices, and other policies in accordance with investors who enter Indonesia.