ASEAN KEY DESTINATIONS
Indonesia FDI jumps 12 percent
Sustained confidence in Indonesia’s economy showed as FDI rose to Rp 39.5 trillion (US$4.6 billion) from Rp 35.4 trillion a year earlier, while domestic investment jumped to Rp 14.1 trillion from Rp 6.7 trillion a year earlier.
“Investors’ level of confidence can be seen here, especially after the central bank showed all the necessary statistics to support it and with rating agencies backing it up with improved ratings for Indonesia,” said Azhar Lubis, deputy chairman of investment controlling and implementation at BKPM.
Total realized investment grew 27.3 percent to Rp 53.6 trillion. Azhar said total investment is projected at Rp 240 trillion this year, with foreign investment accounting for Rp 170.4 trillion of that amount.
Private consumption accounts for about two-thirds of Indonesia’s economy, while investment makes up about 15 percent. The economy is projected to expand by 6.5 percent this year, up from 6.1 percent growth last year.
Azhar said the growth in investment was triggered by growing confidence in Indonesia’s business environment, as well as concrete steps from the government to improve the investment climate.
Destry Damayanti, an economist at Mandiri Sekuritas, said the news from BKPM showed Indonesia’s rising stature among foreign investors.
“This is clearly a positive sign. The talk about it being a good time to invest in Indonesia is finally starting to materialize,” Destri said on Wednesday. “The BKPM is targeting a 15 percent increase in foreign investment, so I think the first-quarter progress is on track and on schedule.”
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