Indonesia aims for FDI growth of 23% after record 2012
L'Oreal, the world's top cosmetics group, opened its biggest factory globally in Indonesia this year, one of many consumer firms eyeing spending by the country's emerging middle class. L'Oreal sees sales in Indonesia growing 30 percent this year to make it the firm's fastest growing Asian market.
The investment board recently approved a licence for tech giant Apple to open official stores in Indonesia, Basri said. Basri told Reuters last year that he was confident as the country had $75 billion of FDI in the pipeline.
The increases in FDI have had an negative side, leading the country into a wider current account deficit as a result of surging imports of capital goods and raw materials and falling commodity exports and putting pressure on the rupiah.
While direct investors pour into the country and the stock market hit a record high this month, portfolio investor sentiment has turned more neutral or bearish because of the rupiah, with increased trading on offshore currency derivative markets to hedge bets on rupiah assets.
The government and the central bank last week instructed state-controlled oil and gas firm PT Pertamina to stop buying dollars from the open market, an effort to support the currency, which was Asia's worst emerging market performer last year.
Nissan Motor Co, among many automakers expanding production in the country, said recently the rupiah was
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