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Investment in Indonesia Increases: Government
July 26, 2010

Office buildings in Jakarta. Domestic and foreign investment in Indonesia increased 40 percent in the second quarter of 2010 from the same period a year ago. (JG Photo/ Afriadi Hikmal) Office buildings in Jakarta. Domestic and foreign investment in Indonesia increased 40 percent in the second quarter of 2010 from the same period a year ago. (JG Photo/ Afriadi Hikmal)
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mns_ent
12:04pm Jul 28, 2010

I think people should be told NOT to invest in Indonesia for a while, until certain... hang on... MANY things are taken care of. Let's start with the increase religious intolerance? Or perhaps the never ending corruption? Or...

Valkyrie
5:15am Jul 27, 2010

Don't they love to pull the wool over our eyes, as they often do? Boy, aren't they insulting our intelligence.


Roland
12:38am Jul 27, 2010

@OzAbroad - agreed to every single of your point!

In addition there is an embarrassing infrastructure to point out (eg. streets for the transportation of manufactured goods), the threat of religious violence, the general low level of specialized education and existing training of potential Indonesian employees, and of course the never ending practice of corruption on all levels.

When Gita Wirjawan says that "investor confidence to our investment climate improved,” I believe he was just shifting statistics and numbers around to make it look good on his behalf as Indonesia's investment chief - comparing strongly with other emerging countries as for example Vietnam which has a far better investment climate.

OzAbroad
8:05pm Jul 26, 2010

There needs to be some breakdown in the figures. What was the investment in? I think you may find that a large amount of foreign investment is in oil, gas and mining.

To start a company in Indonesia is about 10 times more difficult that in Singapore (or even Thailand). Nothing is made easy and the red tape is horrendous.

Expat companies have to conform to every rule and regulation - not so local companies.

And new expat companies are instant targets for immigration, police, depnaker etc etc.

With some sense this could be a great country. But not while over regulation and restrictive practices continue.


Jeanne Hachette
7:27pm Jul 26, 2010

@ padt, what about using wheelbarrows for a change?

Jakarta. Investment in Indonesia, including from both foreign and domestic investors, rose 40 percent in the second quarter of 2010 from the same period a year ago, said the country’s investment chief Gita Wirjawan on Monday.

The increase could show that strong economic growth and increasing consumer demand in Indonesia is leading more investors to make longer-term bets on the country, which has struggled to attract as much foreign direct investment as regional peers.

“Q2 investment growth rose more than 40 percent in total, year-on-year. Both domestic and foreign investment grew significantly. Investor confidence to our investment climate improved,” Wirjawan said after a meeting of government ministers.

He did not give the total investment level or a breakdown between foreign and domestic investment, but said further details would be released this week.

The state investment agency forecast that foreign direct investment would rebound 15 percent this year, after falling 27 percent to $10.8 billion last year.

Foreign investors staked $3.8 billion in Indonesia in the first quarter of 2010.

Indonesia has so far failed to match the levels of direct foreign investment attracted into regional powerhouses China and India, as investors are often put off by red tape, rampant corruption, and a shaky legal system.

Investors have, however, poured into the country’s markets in the past year, with the stock index and net foreign ownership of local debt both hitting record highs this month.


Reuters