Indonesia optimism at all-time-high
Foreign direct investment into Indonesia reached a record $5.9 billion in the third quarter of 2012, a rise of 22 per cent compared to the same period last year, the Bank of Indonesia announced this week.
Indonesia as a G20 member remained a magnet for investors in a troubled global economy, even with lacking regulations for investment protection, poor infrastructure and corruption still being worrying issues. But the country’s diversified economy, the large labour pool and growing domestic market appear to be outweighing these risks and make them “acceptable” for foreign investors.
According to the country’s foreign investment board, base chemicals, mining and transportation-telecommunication industries were the main recipients of investment in the third quarter.
Among the largest investors in Indonesia currently are Taiwanese Foxconn, the main supplier of Apple Inc. Foxconn said it will invest up to $10 billion in Indonesia over the coming 5 to 10 years.
South Korean steelmaker POSCO said on October 19 that it will almost double its investment in Indonesia to $11 billion over the next 5 years, from $6 billion currently.
POSCO, the world’s fourth-biggest steelmaker, already has a multi-billion dollar joint venture with Indonesian state-owned PT Krakatau Steel, the country’s biggest steel producer.
Earlier this year, POSCO Engineering & Construction formed a consortium to build two 300-megawatt power plants on Indonesia’s Sumatra island, worth around $1 billion.
[caption id="attachment_4967" align="alignleft" width="260"] South Korean steelmaker POSCO has committed itself to $11 billion investment over the next 5 years in Indonesia[/caption] Foreign direct investment into Indonesia reached a record $5.9 billion in the third quarter of 2012, a rise of 22 per cent compared to the same period last year, the Bank of Indonesia announced this week. Indonesia as a G20 member remained a magnet for investors in a troubled global economy, even with lacking regulations for investment protection, poor infrastructure and corruption still being worrying issues. But the country's diversified economy, the large labour pool and growing domestic...
Foreign direct investment into Indonesia reached a record $5.9 billion in the third quarter of 2012, a rise of 22 per cent compared to the same period last year, the Bank of Indonesia announced this week.
Indonesia as a G20 member remained a magnet for investors in a troubled global economy, even with lacking regulations for investment protection, poor infrastructure and corruption still being worrying issues. But the country’s diversified economy, the large labour pool and growing domestic market appear to be outweighing these risks and make them “acceptable” for foreign investors.
According to the country’s foreign investment board, base chemicals, mining and transportation-telecommunication industries were the main recipients of investment in the third quarter.
Among the largest investors in Indonesia currently are Taiwanese Foxconn, the main supplier of Apple Inc. Foxconn said it will invest up to $10 billion in Indonesia over the coming 5 to 10 years.
South Korean steelmaker POSCO said on October 19 that it will almost double its investment in Indonesia to $11 billion over the next 5 years, from $6 billion currently.
POSCO, the world’s fourth-biggest steelmaker, already has a multi-billion dollar joint venture with Indonesian state-owned PT Krakatau Steel, the country’s biggest steel producer.
Earlier this year, POSCO Engineering & Construction formed a consortium to build two 300-megawatt power plants on Indonesia’s Sumatra island, worth around $1 billion.
