Indonesia seeks more Chinese investment

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Indonesia’s penchant for protectionist trade measures wielded to safeguard fledging industries won’t affect policymakers’ open stance towards foreign investments, analysts say.

Currently overdependent on capital flows from Singapore, Indonesia hopes to diversify away from the city-state towards other sources such as China and the Middle East.

Investment from China has spiked over the past year to the tune of $2.9 billion, 31.7 per cent higher than in the previous year, largely because dissembled trade barriers that came along with the inauguration of the China-ASEAN Free Trade Area (CAFTA), enacted in January 2010.

Indonesia is China’s top supplier of materials, such as nickel ore, bauxite, iron ore and coal mining, and multinationals such as Nestle and Ford are increasingly eying the island of Java, the archipelago’s economic powerhouse.

Investment from the GCC, in particular from the UAE, has also been surging, as previously reported by Inside Investor.

“There is enough room and sectors for investors to participate in our vast economy,” Indonesian Investment Promotion Centre head Muhamad Harri Santoso told a room full of media at the CIMB ASEAN SME Forum 2012 in Petaling Jaya last week, as reported by The Star.

Food production, pharmaceutical, and agricultural sub-segments such as livestock and fisheries are likely to be appealing, according to Santoso.

He added that the archipelago is in an enviable position to weather precipitous fluctuations in the global market.

“That’s because our trade is not dependent on these traditional markets of Asia,” he explained.

Indonesia, Southeast Asia’s largest economy, is targeting $41 billion worth of investment by 2013. This year the archipelago hopes to attract $30 billion worth of foreign direct investments, up from the $27 billion achieved last year.

Santoso added that the Indonesian government was targeting to grow the country’s economy by 6.7 per cent this year, compared with a growth of 6.5 per cent in 2011.

McKinsey, a consultancy, ranks Indonesia the 16th largest in the world this year, predicting that the country will rise to become the seventh largest by 2030.

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Reading Time: 2 minutes

Indonesia’s penchant for protectionist trade measures wielded to safeguard fledging industries won’t affect policymakers’ open stance towards foreign investments, analysts say.

Reading Time: 2 minutes

Indonesia’s penchant for protectionist trade measures wielded to safeguard fledging industries won’t affect policymakers’ open stance towards foreign investments, analysts say.

Currently overdependent on capital flows from Singapore, Indonesia hopes to diversify away from the city-state towards other sources such as China and the Middle East.

Investment from China has spiked over the past year to the tune of $2.9 billion, 31.7 per cent higher than in the previous year, largely because dissembled trade barriers that came along with the inauguration of the China-ASEAN Free Trade Area (CAFTA), enacted in January 2010.

Indonesia is China’s top supplier of materials, such as nickel ore, bauxite, iron ore and coal mining, and multinationals such as Nestle and Ford are increasingly eying the island of Java, the archipelago’s economic powerhouse.

Investment from the GCC, in particular from the UAE, has also been surging, as previously reported by Inside Investor.

“There is enough room and sectors for investors to participate in our vast economy,” Indonesian Investment Promotion Centre head Muhamad Harri Santoso told a room full of media at the CIMB ASEAN SME Forum 2012 in Petaling Jaya last week, as reported by The Star.

Food production, pharmaceutical, and agricultural sub-segments such as livestock and fisheries are likely to be appealing, according to Santoso.

He added that the archipelago is in an enviable position to weather precipitous fluctuations in the global market.

“That’s because our trade is not dependent on these traditional markets of Asia,” he explained.

Indonesia, Southeast Asia’s largest economy, is targeting $41 billion worth of investment by 2013. This year the archipelago hopes to attract $30 billion worth of foreign direct investments, up from the $27 billion achieved last year.

Santoso added that the Indonesian government was targeting to grow the country’s economy by 6.7 per cent this year, compared with a growth of 6.5 per cent in 2011.

McKinsey, a consultancy, ranks Indonesia the 16th largest in the world this year, predicting that the country will rise to become the seventh largest by 2030.

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