Indonesia tops FDI record

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Jakarta-nightIndonesia drew in a record 65.5 trillion rupiah (about $6.744 billion) in foreign direct investment (FDI) from January to March 2013, marking a 27.7 per cent rise annually, the Investment Coordinating Board said on April 22.

Overall, foreign and domestic investment for the first quarter topped $9.5 billion, increasing 30.6 per cent from the same quarter in 2012.

Indonesia attracted $1.4 billion in mining, $1.2 billion in the chemical and pharmaceutical industries and $1 billion in the metal, machinery and electronic industries, the Investment Coordinating Board said.

Japan was the largest source of FDI into Indonesia during this period, with Japanese automotive firms injecting $1.2 billion, followed by South Korea with $800 million in investment and Singapore, with $600 million.

The record surge in foreign capital inflows indicates that investors are still attracted by Indonesia’s large and growing consumer market despite the near-term challenges, which include the country’s upcoming election, a mounting current account deficit and wavering inflation levels.

The entering of millions of more Indonesians to the middle class will continue to produce a demographic dividend, with about half of Indonesia’s 242 million people under the age of 30.

Indonesia’s new economic boom will add 90 million people to the country’s consumer class by 2030, more than any other country except China and India, a study by McKinsey Global Institute said.

The World Bank last year put the number of middle-class Indonesians at 130 million.

Part of Indonesia’s appeal for foreign investors is the country’s regained investment credit grade status, issued by Fitch and Moody’s in late 2011 and early 2012, respectively.

Southeast Asia’s largest economy grew 6.2 per cent in 2012, and the Asian Development Bank is forecasting robust growth for the country’s medium-term outlook.

“GDP growth is forecast to quicken in the next two years,” the develop bank’s recently released report, Asia Outlook 2013, states.

Among the strongest growing sectors the report lists for 2012 in Indonesia are construction and agriculture.

Meanwhile, exports, mining and oil all fell, in part because of a rocky global economy.

 

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Reading Time: 2 minutes

Indonesia drew in a record 65.5 trillion rupiah (about $6.744 billion) in foreign direct investment (FDI) from January to March 2013, marking a 27.7 per cent rise annually, the Investment Coordinating Board said on April 22.

Reading Time: 2 minutes

Jakarta-nightIndonesia drew in a record 65.5 trillion rupiah (about $6.744 billion) in foreign direct investment (FDI) from January to March 2013, marking a 27.7 per cent rise annually, the Investment Coordinating Board said on April 22.

Overall, foreign and domestic investment for the first quarter topped $9.5 billion, increasing 30.6 per cent from the same quarter in 2012.

Indonesia attracted $1.4 billion in mining, $1.2 billion in the chemical and pharmaceutical industries and $1 billion in the metal, machinery and electronic industries, the Investment Coordinating Board said.

Japan was the largest source of FDI into Indonesia during this period, with Japanese automotive firms injecting $1.2 billion, followed by South Korea with $800 million in investment and Singapore, with $600 million.

The record surge in foreign capital inflows indicates that investors are still attracted by Indonesia’s large and growing consumer market despite the near-term challenges, which include the country’s upcoming election, a mounting current account deficit and wavering inflation levels.

The entering of millions of more Indonesians to the middle class will continue to produce a demographic dividend, with about half of Indonesia’s 242 million people under the age of 30.

Indonesia’s new economic boom will add 90 million people to the country’s consumer class by 2030, more than any other country except China and India, a study by McKinsey Global Institute said.

The World Bank last year put the number of middle-class Indonesians at 130 million.

Part of Indonesia’s appeal for foreign investors is the country’s regained investment credit grade status, issued by Fitch and Moody’s in late 2011 and early 2012, respectively.

Southeast Asia’s largest economy grew 6.2 per cent in 2012, and the Asian Development Bank is forecasting robust growth for the country’s medium-term outlook.

“GDP growth is forecast to quicken in the next two years,” the develop bank’s recently released report, Asia Outlook 2013, states.

Among the strongest growing sectors the report lists for 2012 in Indonesia are construction and agriculture.

Meanwhile, exports, mining and oil all fell, in part because of a rocky global economy.

 

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