BKPM Sets 17.2 Percent Direct Investment Growth Next Year

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Azhar said around 62.7 percent of the investment should come from foreign investors and the remainder from local ones.

He said natural resources, minerals, mining, agriculture, manufacturing and fisheries sectors are expected to draw most of the new investment.

Petrochemical, metal, automotive parts and tourism are sectors that are expected to record faster growth next year.

Azhar said the government’s push to finish more infrastructure projects — power plants, toll roads, ports — will help the above sectors to grow even faster.

Indonesia’s biggest investors are expected to come from Singapore, China, Japan, South Korea, Taiwan and Malaysia.

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Local investors are expected to pour money into property, palm oil processing, fisheries, footwear, textile and creative economy.

The BKPM will improve its one stop service (PTSP) at central and regional levels and do more promotion for the country’s priority sectors.

Inflation is estimated to hover around 2.5 percent to 4.5 percent next year, the rupiah at Rp 13,300-Rp 13,500 per US dollar, unemployment rate at 5 percent-5.3 percent and poverty level at 9.5 percent-10 percent.

Global credit rating agency Standard & Poor’s has granted a long-awaited investment grade status to Indonesia’s sovereign bonds, praising the country’s ability to reduce risks in its public finances. This rating upgrade is expected to not only boost investors’ confidence in portfolio investment, but also in direct investment.

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Source: einnews.com