Rieka Rahadiana & Aditya Suharmoko | October 20, 2011
Foreign direct investment in Indonesia in the first nine months of 2011 was 16 percent higher than a year earlier, and officials are optimistic that their target for this year will be met.
The country’s investment board on Thursday said FDI in the third quarter was 46.4 trillion rupiah ($5.27 billion), or 15.7 percent more than in the same period of 2010.
In the second quarter, FDI totaled Rp 43.1 trillion, or 21 percent above the year-earlier figure.
While the slower growth pace in the third quarter than second might raise concern that investor interest could be hit by global economic woes, the investment board said it was confident the level would remain high.
“We’re optimistic ... we haven’t felt the global impact,” said M. Azhar Lubis, a board official.
The investment board, whose chairman Gita Wirjawan this week was made Indonesia’s trade minister, has a target of getting Rp 170.2 trillion in FDI this year.
Through nine months, the total was Rp 129 trillion.
In the third quarter, FDI went heavily into sectors such as telecommunication and mining, as investors cashed in on booming consumer demand from the world’s top exporter of thermal coal and tin.
Analysts expect Indonesia to remain attractive to investors next year as as the economy is expected to again grow more than 6 percent.
“FDI should increase going forward, about 17 to 18 percent next year. We see there’s an impact from this crisis, but not too big,” said David Sumual, an analyst at BCA in Jakarta.
“For 2012, Indonesia doesn’t have problems. Growth will still be supported by investment and domestic consumption.”
Total foreign and domestic investment in Indonesia could reach Rp 290 trillion next year, the investment board said early this month.
Southeast Asia’s largest economy also saw strong portfolio investment this year, but the eurozone debt crisis and worries about global conditions have led some investors to rebalance assets in emerging economies since September, hurting the rupiah currency.
In an effort to encourage foreign investment, Indonesia has issued a regulation that provides a tax break for investors committing at least Rp 1 trillion into sectors including base metals and petrochemicals.
The government is also focusing on infrastructure improvement and is relying on private investors to finance two-thirds of its $150 billion infrastructure needs.
Japan, China and India have all made big commitments this year.
Poor infrastructure, from roads to ports, means higher distribution costs that create both a structural inflation problem and inefficiencies for investors.
Source : http://www.thejakartaglobe.com/home/indonesias-jan-sept-foreign-investment-up-16-percent/472897
Foreign direct investment in Indonesia in the first nine months of 2011 was 16 percent higher than a year earlier, and officials are optimistic that their target for this year will be met.
The country’s investment board on Thursday said FDI in the third quarter was 46.4 trillion rupiah ($5.27 billion), or 15.7 percent more than in the same period of 2010.
In the second quarter, FDI totaled Rp 43.1 trillion, or 21 percent above the year-earlier figure.
While the slower growth pace in the third quarter than second might raise concern that investor interest could be hit by global economic woes, the investment board said it was confident the level would remain high.
“We’re optimistic ... we haven’t felt the global impact,” said M. Azhar Lubis, a board official.
The investment board, whose chairman Gita Wirjawan this week was made Indonesia’s trade minister, has a target of getting Rp 170.2 trillion in FDI this year.
Through nine months, the total was Rp 129 trillion.
In the third quarter, FDI went heavily into sectors such as telecommunication and mining, as investors cashed in on booming consumer demand from the world’s top exporter of thermal coal and tin.
Analysts expect Indonesia to remain attractive to investors next year as as the economy is expected to again grow more than 6 percent.
“FDI should increase going forward, about 17 to 18 percent next year. We see there’s an impact from this crisis, but not too big,” said David Sumual, an analyst at BCA in Jakarta.
“For 2012, Indonesia doesn’t have problems. Growth will still be supported by investment and domestic consumption.”
Total foreign and domestic investment in Indonesia could reach Rp 290 trillion next year, the investment board said early this month.
Southeast Asia’s largest economy also saw strong portfolio investment this year, but the eurozone debt crisis and worries about global conditions have led some investors to rebalance assets in emerging economies since September, hurting the rupiah currency.
In an effort to encourage foreign investment, Indonesia has issued a regulation that provides a tax break for investors committing at least Rp 1 trillion into sectors including base metals and petrochemicals.
The government is also focusing on infrastructure improvement and is relying on private investors to finance two-thirds of its $150 billion infrastructure needs.
Japan, China and India have all made big commitments this year.
Poor infrastructure, from roads to ports, means higher distribution costs that create both a structural inflation problem and inefficiencies for investors.
Source : http://www.thejakartaglobe.com/home/indonesias-jan-sept-foreign-investment-up-16-percent/472897
0 comments:
Posting Komentar