Indonesian foreign investment to cope with trade deficit: CIPS
JAKARTA, Dec 20, 2018, ANTARA News. Center for Indonesian Policy Studies (CIPS) said the government needs to lure in more foreign investment to help improve its foreign trade performance, reported the ANTARA News.
“The government needs to encourage more foreign investment to cope with the country`s foreign trade deficit,” researcher of CIPS Assyifa Szami Ilman said on Thursday.
The country recorded a deficit of US$2.047 billion in November, 2018 or the worst performance in the country`s foreign trade since January, 2014.
Assyifa said the prices of palm oil and coal, which still dominate the country`s export commodities declined in international market resulting in a fall in the export earning and wider deficit.
Earlier, Chief Economics Minister Darmin Nasution said the government policy seeking to boost exports and reduce imports began to be effective only in the last quarter of this year.
The government hoped to increase exports and cut imports to curb or reduce current account deficit.
Darmin said efforts to boost investment in export oriented industries and to increase the use of biodiesel 20 had not been fully effective as expected. The government has ruled wider use of B20, as transport and industrial fuel to reduce import of diesel oil.
B20 is a mixture of palm oil and diesel with palm oil making up 20 percent of the mixture.
Darmin, however said he was confident the B20 policy would show result in the last quarter of this year that the current account deficit could cut from US%8.8 billion in the third quarter of 2018.
Reporting by Muhammad Razi Rahman, A Saragih
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