Foreign direct investments (FDIs) in Indonesia rose 19.2% in 2015 year-on-year to reach IDR365.9 trillion (US$26.4 billion), with Singapore as the largest investor, according to Indonesia’s Capital Investment Coordinating Board (BKPM).
Singapore is still number one, with its investments reaching $5.9 billion, followed by Malaysia ($3.1 billion), Japan ($2.9 billion), the Netherlands ($1.3 billion), and South Korea ($1.2 billion), BKPM’s deputy for capital investment implementation control, Azhar Lubis, said.
China, which is expected to intensify investments in Indonesia, is ranked ninth, while Hong Kong comes in at No. 6, he added.
“If we combine China and Hong Kong, the total is around US$1.5 billion. It is at fourth. This shows that China is starting to revive,” Azhar said.
BKPM head Franky Sibarani said China’s direct investments, as well as its investments with partners, rose 47% in 2015, while Hong Kong’s investment jumped 103% during the same period.
Franky added that capital from Hong Kong and China was actually larger because of partnerships with investors that have companies in other countries, such as Singapore.
“So, much of their investment enters from Singapore. Therefore, it is not impossible that it is believed to come from Singapore, while actually it originates from China. We believe its contribution will increase,” he said, as quoted by Antara News.
Total investments in 2015 reached IDR545.4 trillion, rising by 17.8% from 2014. The value of domestic investments was recorded at IDR178.5 trillion, up by 15%.
The overall investment figure surpassed the target set for 2015 of IDR519.5 trillion.
The biggest beneficiaries of FDIs in 2015 were the mining, transportation, telecommunication, and mineral-processing sectors.
Growing investments over the past couple of years are giving rise to optimism that Indonesia can expect more capital inflows in the years ahead, particularly as the Indonesian government has been unveiling a series of economic stimulus packages since September 2015.
Malaysia okays $34B in investments
In other news, approved investments in Malaysia in the first nine months of last year totaled US$34.4 billion, showing investors’ confidence in the country given the stable political climate as well as continuity and certainty of policies, said the Ministry of International Trade and Industry (MITI).
Trade minister Mustapa Mohamed said the successful execution of economic transformation plans contributed to Malaysia’s macroeconomic stability and improved governance and integrity.
“Malaysia has world-class infrastructure. Our economic diversity and broad-based exports give the country a certain level of resilience in facing the current challenges from low oil prices and slower global economic growth,” he said in a statement.
Mustapa said Malaysia was also committed to ASEAN’s economic integration and the Trans-Pacific Partnership (TPP) deal, which would make Malaysia more attractive to foreign investments.
Photo: myself
