Indonesia investments on course to meet target

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JakartaIndonesia is on course to meet its annual investment target as overall investment growth has been maintained at above 20 per cent in the third quarter, with robust growth in domestic direct investment (DDI) compensating for the slowdown in foreign direct investment (FDI), the Jakarta Post reported.

The Investment Coordinating Board (BKPM) reported on October 23 that total investments had jumped 23 per cent year-on-year to top $8.9 billion in July-September, the highest ever recorded, despite the capital outflows and financial market turbulence that took place during that period.

“This is an important signal that Indonesia, amid the bleak global economic outlook, remains a major destination for investment,” BKPM chairman Mahendra Siregar said at a press briefing.

The increasingly greater role of local investors meant that Indonesia would be more resilient to external shocks, he said, referring to the fact that FDI growth — which accounts for two-thirds of total investment — had slowed to a three-year low of 18.4 per cent, compared to the 33 per cent DDI growth.

Japan was the biggest contributor to FDI in Indonesia, accounting for 19 per cent of total foreign investments, mainly because of the increased investment by Japanese automotive and electronics firms.

Total investment realization in the third quarter generated at least 411,543 jobs, though the number could reach at least 1.2 million given the fact that investments have at least a quadruple multiplier effect on job creation, according to Mahendra.

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Reading Time: 1 minute

Indonesia is on course to meet its annual investment target as overall investment growth has been maintained at above 20 per cent in the third quarter, with robust growth in domestic direct investment (DDI) compensating for the slowdown in foreign direct investment (FDI), the Jakarta Post reported.

Reading Time: 1 minute

JakartaIndonesia is on course to meet its annual investment target as overall investment growth has been maintained at above 20 per cent in the third quarter, with robust growth in domestic direct investment (DDI) compensating for the slowdown in foreign direct investment (FDI), the Jakarta Post reported.

The Investment Coordinating Board (BKPM) reported on October 23 that total investments had jumped 23 per cent year-on-year to top $8.9 billion in July-September, the highest ever recorded, despite the capital outflows and financial market turbulence that took place during that period.

“This is an important signal that Indonesia, amid the bleak global economic outlook, remains a major destination for investment,” BKPM chairman Mahendra Siregar said at a press briefing.

The increasingly greater role of local investors meant that Indonesia would be more resilient to external shocks, he said, referring to the fact that FDI growth — which accounts for two-thirds of total investment — had slowed to a three-year low of 18.4 per cent, compared to the 33 per cent DDI growth.

Japan was the biggest contributor to FDI in Indonesia, accounting for 19 per cent of total foreign investments, mainly because of the increased investment by Japanese automotive and electronics firms.

Total investment realization in the third quarter generated at least 411,543 jobs, though the number could reach at least 1.2 million given the fact that investments have at least a quadruple multiplier effect on job creation, according to Mahendra.

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