INDONESIA: FDI BOOM IN 2011 - 1/30/2012

Foreign investments are expected to rise further in 2012


Foreign Direct Investment (FDI) in Indonesia jumped by 18.4% to US $ 19.3 billion in 2011. According to the data provided by Gita Wirjawan, Minister of Trade of the Government of Jakarta, the total investments in the country including both foreign and domestic investment in the last year amounted to US $ 27.6 billion. Minister Wirjawan underlined that there was also a substantial increase in domestic investments, which accounted for 30.2% of the total.

At the top of the list of the investing nations is Singapore with a share of 26.3%, followed by Japan, USA, Netherlands and South Korea. Most foreign investment in 2011 was channeled into the transportation, warehousing and telecommunications sectors (19.5%), mining (18.6%), and electricity, gas and water projects (9.5%), most of which were located in Greater Jakarta, West Java and Banten.

Future perspectives in Indonesia seem to be very favourable. In 2012 Foreign Investments are expected to increase considering the optimal political and economical tuning of the country and the positive assessment given by the famous rating agencies (Moody's and Fitch) in December. Despite the international crisis the forecasts of the Indonesian Government indicate a 15% growth in the total investments in the country with value of around US $ 32 billion.

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