KONTAN.CO.ID - JAKARTA. Indonesia needs to reconsider the benefits it gets from being part of the ASEAN Economic Community, the head of the country's investment board said on Wednesday, after data showed foreign direct investment fell for a second straight quarter. Southeast Asia's largest economy attracted 97.6 trillion rupiah ($6.7 billion) of FDI in April-June, excluding investment in banking and oil and gas, a 6.9% drop in rupiah terms from a year ago and a roughly 3% fall in dollar terms, investment board (BKPM) data showed. That followed a 9.2% fall in FDI in the first quarter as investors postponed investment decisions due to the pandemic.
Baca Juga: Global coronavirus cases exceed 15 million Top sources of FDI in the second quarter were Singapore, Hong Kong, China and Japan. BKPM chief Bahlil Lahadalia noted FDI from Singapore had held up despite the city-state posting a 41% quarterly drop in its GDP in the second quarter, which he said showed it was a merely a hub for investment from elsewhere. "We must begin to rethink whether the ASEAN (Association of Southeast Asian Nations) Economic Community has benefitted Indonesia," said Lahadalia, adding this was a rational debate and noting Britain's decision to leave the European Union. The ASEAN Economic Community was established in 2015 to integrate the economies of its 10 member states. The group has had a number of free trade agreements as an economic block and is pursuing further integration in the broader economic sector as well as in political security and socio-cultural matters.