Direct investments into Indonesia up 28%

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The food industry in Indonesia is one of the sectors receiving the highest investment inflows

Domestic and foreign direct investments into Indonesia rose by 28.1 per cent in the first half of 2012, the country’s Investment Board announced on July 25. Total realised investments between January and June 2012 stood at 76.9 trillion rupiahs ($8.13 billion).

Of the total sum, 20.8 trillion rupiahs were domestic direct investments and 56.1 trillion rupiahs were foreign direct investments.

The biggest sectors for foreign investments were mining, the chemical and pharmaceutical industry, electricity, gas and water supply, the food industry and the metal, machinery and electronic industry. Most of the investments were realised in Java, Banten, Papua and East Kalimantan, according to the offcial report of the Investment Coordinating Board of Republic of Indonesia (BKPM) obtained by Inside Investor.

The largest foreign investors were Singapore ($ 800 million), US ($ 700 million), Australia ($ 600 million), Japan ($500 million) and South Korea ($ 500 million).

Domestic investments flowed mainly into the metal, machinery and electronics industry, the paper and printing industry, food crops and plantation, the non-metallic mineral industry and the food industry.

International rating agency Moody’s gave Indonesia a Baa3 investment rating earlier this year and on July 17 reiterated that its outlook for the country remained stable.

In the midst of global economic uncertainties, the rating of Moody’s classifies Indonesia’s economy in a stable condition of investment grade,” said the Chairman of Indonesia’s Investment Coordinating Board, M. Chatib Basri.

“This will encourage the government to implement a prudent consistency in economic management and policy, and it can be seen from the increasing investment realisation during January and June 2012. I am sure that with a better coordination between ministries and institutions, the provinces, districts and cities will expedite a wider and bigger distribution of investment in the future“, he added.

A significant share of the investments also flowed into the various economic corridors in Indonesia, namely the Sumatera Economic Corridor with a focus on the paper and printing industry, the Java Economic Corridor with its large metal, machinery and electronics industry, the Kalimantan Economic Corridor where mining and food industry are dominant and the Sulawesi Economic Corridor with its non-metallic mineral and electricity generation industry.

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Reading Time: 2 minutes

The food industry in Indonesia is one of the sectors receiving the highest investment inflows

Domestic and foreign direct investments into Indonesia rose by 28.1 per cent in the first half of 2012, the country’s Investment Board announced on July 25. Total realised investments between January and June 2012 stood at 76.9 trillion rupiahs ($8.13 billion).

Reading Time: 2 minutes

The food industry in Indonesia is one of the sectors receiving the highest investment inflows

Domestic and foreign direct investments into Indonesia rose by 28.1 per cent in the first half of 2012, the country’s Investment Board announced on July 25. Total realised investments between January and June 2012 stood at 76.9 trillion rupiahs ($8.13 billion).

Of the total sum, 20.8 trillion rupiahs were domestic direct investments and 56.1 trillion rupiahs were foreign direct investments.

The biggest sectors for foreign investments were mining, the chemical and pharmaceutical industry, electricity, gas and water supply, the food industry and the metal, machinery and electronic industry. Most of the investments were realised in Java, Banten, Papua and East Kalimantan, according to the offcial report of the Investment Coordinating Board of Republic of Indonesia (BKPM) obtained by Inside Investor.

The largest foreign investors were Singapore ($ 800 million), US ($ 700 million), Australia ($ 600 million), Japan ($500 million) and South Korea ($ 500 million).

Domestic investments flowed mainly into the metal, machinery and electronics industry, the paper and printing industry, food crops and plantation, the non-metallic mineral industry and the food industry.

International rating agency Moody’s gave Indonesia a Baa3 investment rating earlier this year and on July 17 reiterated that its outlook for the country remained stable.

In the midst of global economic uncertainties, the rating of Moody’s classifies Indonesia’s economy in a stable condition of investment grade,” said the Chairman of Indonesia’s Investment Coordinating Board, M. Chatib Basri.

“This will encourage the government to implement a prudent consistency in economic management and policy, and it can be seen from the increasing investment realisation during January and June 2012. I am sure that with a better coordination between ministries and institutions, the provinces, districts and cities will expedite a wider and bigger distribution of investment in the future“, he added.

A significant share of the investments also flowed into the various economic corridors in Indonesia, namely the Sumatera Economic Corridor with a focus on the paper and printing industry, the Java Economic Corridor with its large metal, machinery and electronics industry, the Kalimantan Economic Corridor where mining and food industry are dominant and the Sulawesi Economic Corridor with its non-metallic mineral and electricity generation industry.

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