Incoming foreign direct investment (FDI) to Indonesia is expected to be around USD 11 billion to USD 13 billion this year, less than the average in recent years of USD 20 billion per year, a senior official said on Thursday.
Thomas Lembong, chief of the Indonesia Investment Board, said the decline, which could reach as much as 40 percent - is “quite significant”, and blamed lack of policy reform momentum at the start of this year.
Lembong, however, said reform had picked up the pace in recent months, including the upcoming revision of the negative investment list, following the rupiah’s depreciation. The list specifies business activities which are either entirely closed or conditionally open to foreign investment.
FD in Indonesia fell for the second straight quarter in July-September from a year earlier.
Source: The Jakarta Post