Foreign direct investment (FDI) into Indonesia represented less than 2 per cent of all global investment on average in 2012-2016, government data showed, and over that period less than 30 per cent of foreign commitments were eventually realized.
Incoming FDI declined in 2015 and 2016, and is rebounding now, Bank Indonesia's balance of payments data shows. The central bank recorded a nearly 40 per cent increase in the first half of 2017, to US$8.82 billion.
Indonesia's economy has been growing at around 5 per cent in the last few years, but many have been frustrated by an inability to speed up the pace, partly due to sluggish consumption and fairly slow growing investment.
To boost this, there are new measures to create a single submission system for investors so they only have to go one place to get all required licenses. But this too, takes time.
Indonesia is aiming for 5.6 percent economic growth in 2018. According to President Jokowi, Indonesia’s economic growth is better compared to other countries. Last year, the economy grew by 5.02 percent, the world’s third best achievement after India and China.
As one of the fastest growing countries in the world and possesses one of the most resistant currencies to the strong dollar in Asia, Indonesian companies have strong financial ratios compared to the rest of the emerging market countries.
(Source: Jakarta Post, Bloomberg, Channel News Asia)