Indonesia Remains Attractive for Investment

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  • TEMPO/Seto Wardhana

    TEMPO/Seto Wardhana

    TEMPO.CO, Jakarta - Indonesia's finances are projected to stay afloat amid the uncertain global economy. Along with Southeast Asian neighbors like Thailand, Vietnam and Malaysia, Indonesia still stands as an attractive investment destination.

    The Economist Corporate Network's report dubbed "Investing into Asia's Reform Landscape: Asia Business Outlook Survey 2015" even named Indonesia as Asia's second major investment destination after China.

    The survey is similar to the Financial Times' data showing that Indonesia is among the world's top five investment destinations along with China and Singapore. Indonesia is also in the top 10 investment destinations along with Japan and South Korea.

    That's why, even though the domestic economy has been sluggish this year the actual figure of Indonesia's foreign investment (FDI) is still on an uptrend.

    The Investment Coordinating Board (BKPM) showed that as of June 2015 FDI amounted to 4,460 projects worth Rp92.2 trillion. This was an 18.2 percent year-on-year increase from June 2014's Rp78 trillion.

    The BKPM held a survey to identify the progress of 100 foreign investment projects that have entered construction stages, as instructed by BKPM chief Franky Sibarani.

    The foreign investment projects are dominated by the industrial sector (64 projects) and electricity sector (14). The rest are divided into major sectors like mining, agriculture, tourism, transport and animal husbandry.

    The 100 projects are worth Rp80 trillion overall, with the highest coming from the industry sector with an investment of Rp39.3 trillion, or 27 percent.