Depok, 12-13 July 2023: The Institute for Economic and Social Research (LPEM FEB) at Universitas Indonesia, in collaboration with the Economic Research Institute for ASEAN and East Asia (ERIA) and Indonesia's Capital Investment Coordinating Board (BKPM), held a two-day Capacity Building on Beginner Level Investment Planning workshop.

The workshop was designed to assist BKPM officials/staff to better formulate government policies for local and overseas investment.  Attendees were required to answer questions such as how to increase income to reduce poverty and why living costs are becoming expensive. The trainers then gave insights on analysing the factors which might affect these questions and provide data-driven answers.

During the first day of training, Dr Jahen F Rezki spoke on inflation, gross domestic product (GDP), and the economic growth rate, providing a strong idea of how the Indonesian economy would fare in the near and distant future. During the COVID-19 pandemic, Dr Jahen forecasted a target rate of inflation of 1–4% based on previous trends and the shock assumption accounting for external factors. Differing from global trends, Indonesia’s inflation remained under control during the pandemic. Delving deeper into the realm of policy, Dr Jahen presented a paper analysing the reasons for restrictive regulations, which could deter foreign investment and restrict economic growth. He said government officials should take these aspects into consideration when formulating policies.

Dr Mahyus Ekananda taught the second day of the workshop, which revolved around technical ability. The workshop attendees applied the theoretical knowledge learned from the first day to calculate foreign direct investments (FDIs) using Excel, based on real data such as the gross portfolio of the total investment that enters Indonesia, using Bank Indonesia data; and the difference between Indonesian and US interest rates, using US Federal Reserve and Bank Indonesia data.

In conclusion, with this newfound knowledge and expertise, the officials are better prepared to address crucial questions on increasing income, reducing poverty, and managing the impact of living costs, ultimately contributing to the sustainable growth and development of Indonesia’s economy.