Indonesia aims for FDI growth of 23% after record 2012
Indonesia is aiming to increase foreign direct investment by 23 percent this year, after record inflows in 2012 helped insulate Southeast Asia's largest economy from a slowdown in exports.
Direct investment in the final quarter of 2012 rose 23 percent to 56.8 trillion rupiah ($5.91 billion), taking full year FDI up 26 percent to around $23 billion, the country's investment board said on Tuesday.
Strong investment was driven by the mining, transport and chemicals sectors, showing firms shrugged off worries over policy uncertainty, corruption and weak infrastructure to seek returns in an economy growing at more than 6 percent.
"Investors at home and abroad have responded positively to efforts to improve the investment climate by central and regional government, more attractive investment incentives and integrated campaigns," said Chatib Basri, the country's investment chief, at a news conference.
Foreign inflows to the G20 economy have increased significantly since Indonesia regained investment grade status from two rating agencies a year ago. Investment makes up around 30 percent of the G20 economy.
Though the headline figure was far smaller than the $111.7 billion in FDI that China attracted in 2012, Indonesia remained attractive to foreign investors compared with its Southeast Asian neighbours. Vietnam, for example, estimated its FDI fell by 5 percent to $10.46 billion in 2012.
Basri did not give details on the firms investing. Mining was the biggest sector, despite a series of new rules that limited foreign ownership and restricted exports. Freeport McMoran Copper & Gold Inc is the biggest existing mining investor.
Indonesia is keen to
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