Indonesia targets $40b investment in 2013
Indonesia’s government is targeting around $40 billion in total investment in 2013, up about 25 per cent from 2012 record levels, as companies look to take advantage of surging consumer demand, the country’s investment chief said on Tuesday according to a Reuters report.
Foreign direct investment is likely to make up over three-quarters of total investment, or over $31 billion in 2013, with the country hoping to attract signature firms that will create a knock-on effect through publicity and associated companies.
“The focus is on firms that bring a supply chain, like Toyota,” investment chief Chatib Basri told Reuters in an interview.
Auto firms such as Japan’s Toyota Motor Corp and Germany’s BMW are investing billions in production in Indonesia, where car sales grew 24 per cent in October.
Investment is moving from the resource sector, which has been rattled by new policies and legal uncertainty this year, towards consumer products, given forecasts for a future “consumer class” of 135 million people, Basri said.
L’Oreal, Nestle and Procter & Gamble are among the consumer firms investing in Indonesia, see our story.
Indonesia had pulled in $17.4 billion in FDI by the third quarter of this year, helping make up for weak exports and shore up its balance of payments to keep economic growth above 6 per cent.
The higher forecast for 2013 signals confidence that Southeast Asia’s biggest economy will remain a hot investor favourite in a struggling global economy, despite worries about infrastructure, labour unrest and regulatory risks.
[caption id="attachment_5554" align="alignleft" width="300"] Toyota aims to double capacity in Indonesia in four years[/caption] Indonesia's government is targeting around $40 billion in total investment in 2013, up about 25 per cent from 2012 record levels, as companies look to take advantage of surging consumer demand, the country's investment chief said on Tuesday according to a Reuters report. Foreign direct investment is likely to make up over three-quarters of total investment, or over $31 billion in 2013, with the country hoping to attract signature firms that will create a knock-on effect through publicity and associated companies. "The focus is on firms...
Indonesia’s government is targeting around $40 billion in total investment in 2013, up about 25 per cent from 2012 record levels, as companies look to take advantage of surging consumer demand, the country’s investment chief said on Tuesday according to a Reuters report.
Foreign direct investment is likely to make up over three-quarters of total investment, or over $31 billion in 2013, with the country hoping to attract signature firms that will create a knock-on effect through publicity and associated companies.
“The focus is on firms that bring a supply chain, like Toyota,” investment chief Chatib Basri told Reuters in an interview.
Auto firms such as Japan’s Toyota Motor Corp and Germany’s BMW are investing billions in production in Indonesia, where car sales grew 24 per cent in October.
Investment is moving from the resource sector, which has been rattled by new policies and legal uncertainty this year, towards consumer products, given forecasts for a future “consumer class” of 135 million people, Basri said.
L’Oreal, Nestle and Procter & Gamble are among the consumer firms investing in Indonesia, see our story.
Indonesia had pulled in $17.4 billion in FDI by the third quarter of this year, helping make up for weak exports and shore up its balance of payments to keep economic growth above 6 per cent.
The higher forecast for 2013 signals confidence that Southeast Asia’s biggest economy will remain a hot investor favourite in a struggling global economy, despite worries about infrastructure, labour unrest and regulatory risks.
