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3rd-Quarter Realized Investment Likely Above IDR100 Trillion

Akhyari Hananto
Akhyari Hananto
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3rd-Quarter Realized Investment Likely Above IDR100 Trillion
 By Linda Silaen

JAKARTA--Total realized investment in Indonesia will likely increase to above 100 trillion rupiah ($9.2 billion) in the third quarter from IDR99.8 trillion in the April-June period, a government official said Tuesday.

Azhar Lubis, deputy chairman of the official Investment Coordinating Board, told reporters that foreigners account for 60% of the investment expected to be realized in the third quarter.

Among the companies ploughing their money into the country during the period are Anglo-Dutch energy company Royal Dutch Shell PLC (RDSA, RDSB, RDSA.LN, RDSB.LN), which last week started to build a $250 million lubricant plant in northern Jakarta; Indonesia's Harita Group, which is building a $1.5 billion bauxite and alumina processing facility in West Kalimantan; and Japan's Suzuki Motor Corp. (7269.TO), which is investing $1 billion in its plant in Bekasi, Mr. Lubis said.

Investors have been attracted to Indonesia in recent years thanks to the country's expanding middle class supported by decent economic growth over the past decade.

New investment, however, is expected to decelerate as a prolonged global economic slowdown is affecting foreign investors' capacity to expand their businesses. Moreover, the current volatility in the rupiah's exchange rate, which resulted in the currency's decline to levels against the U.S. dollar not seen since early 2009 and has triggered selloffs in Indonesian stocks, will also discourage investment.


Write to Linda Silaen at

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