Terrorist Attacks Expected Not Affect Investment, Tourism



Finance Minister Sri Mulyani has expressed confidence that the recent bombings on churches in Surabaya will not deter investors from investing in the country as the law enforcers have started to seriously deal with the issue.

“We hope that law enforcement will restore perception and trust in Indonesia,” said Sri Mulyani over the weekend in Jakarta as reported tribunnews.com

Institute for Development of Economics and Finance (Indef) economist Bima Yudhistira made a similar comment, saying that the sooner law enforcement officers could arrest the suspects, the better it would be for the investment climate.

Suicide bombers attacked three churches in Surabaya on Sunday, killing 14 people and wounding at least 41 others. The attacks occurred days after the riot and prison siege at the National Police’s Mobile Brigade headquarters (Mako Brimob) detention center in Depok, West Java last week, in which five police officers and one detainee were killed.

“But if the incident is not handled properly by law enforcement, it may affect negatively [on investor confidence],” Bima said in Jakarta on Sunday  as reported by kompas.com.

Bima added that security was one of the key considerations among investors, but that the fatal Mako Brimob riot had insignificant impact, with the rupiah even strengthening to Rp 13,900 against US dollar from Rp 14,000 earlier last week.

“It means that investors might be taking [the incident] into consideration, but they are taking the global economy into greater consideration, particularly the United States’ economic policy,” said Bima, adding that investors would also be watching Bank Indonesia’s decision on its reference rate.

Indonesia has tightened securities  all over the country after the attacks. It is also expected that recent terrorist attacks will not affect Indonesia’s tourism sector.

Tourist arrivals in Indonesia surged 28.76 percent from a year earlier to a record-high of 1,364,576 persons in March of 2018. That compared to 1,059,777 persons in the same month of the prior year. Bali was the main destination (484,846 persons), followed by Jakarta (244,467 persons) and Batam (175,194 persons) .

Considering January to March 2018, tourist arrivals grew 14.87 percent compared to the same period a year earlier to 3,665,799 persons. The government aims to attract 20 million visitors a year by 2019. Tourist Arrivals in Indonesia averaged 798925.07 from 2011 until 2018, reaching an all time high of 1364576 in March of 2018 and a record low of 548821 in January of 2011.

(Jakarta Post, Tour Viewers)