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Investments to Hit $29 billion in 2013

Akhyari Hananto
Akhyari Hananto
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Investments to Hit $29 billion in 2013

Indonesia: 2013 investments to hit $29b

Night view of central Jakarta: Indonesia will remain an investors’ darling in 2013, the country’s investment board reassured.

Indonesia is optimistic that it will remain an attractive location for foreign direct investments in 2013 and is expecting 270 trillion rupiah ($29 billion) in FDI in 2013, up from 206 trillion rupiah in 2012, the country’s Investment Coordinating Board (BKPM) said on January 1.

As major global investors shift their business to emerging countries amid economic uncertainty in industrialised nations, Indonesia with its 240-million population and as a part of the economically resilient ASEAN bloc should remain a preferred destination for international corporations, the BKPM further explained.

Despite a backlash in form of the postponement of a multi-billion investment by Taiwanese electronics firm Foxconn, BKPM’s chairman Muhammad Chatib Basri said that it was unlikely that Indonesia would face difficulties meeting foreign investment targets in 2013.

“What many outsiders may not know is that Indonesia has direct investments worth 376 trillion rupiahs [$40.4 billion] in the pipeline,” Basri was quoted as saying by the Jakarta Post. 70 per cent of this figure relates to foreign direct investment, he added.

Multinational corporations that have invested in Indonesia in 2012 include French cosmetics giant L’Oreal. Japanese automaker Toyota has announced plans to invest $1.4 billion in a factory this year. South Korean steelmaker Posco will almost double its investment in Indonesia to $11 billion over the next five years, from $6 billion currently, the firm said in October 2012.

Indonesia’s economy is expected to grow 6.3 per cent in 2013 after expanding by 6.1 per cent in 2012, the World Bank said mid-December 2012.

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