China became Indonesia's second-biggest source of foreign direct investment in 2017, and officials in Jakarta are saying they expect the Chinese inflows will only continue to swell.
China overtook Japan on the Southeast Asian country's investor list and now trails only Singapore, according to data released on Tuesday by Indonesia's Investment Coordinating Board, known as the BKPM. While the top-ranked city-state poured in $8.4 billion, combined investment from China and Hong Kong surged 12% to $5.5 billion.
China and Hong Kong did not even crack the top five until 2016, when they sprang into third place, BKPM data going back to 2012 shows.
Investment from Japan, the runner-up in 2016, dropped 7% last year to $5 billion. South Korea came in fourth, followed by the U.S.; the Netherlands lost the top-five placement it held from 2014 to 2016.
Belt and Road funding will cover three sectors -- transportation, industry and tourism -- and include the construction of ports, airports, railways and a cruise terminal.
Realized FDI in Indonesia last year reached $32.2 billion, an 11% increase from 2016. Domestic investment, meanwhile, rose 21% to 262.3 trillion rupiah ($19.5 billion), which Lembong attributed partly to repatriation of funds from the government's tax amnesty program last year. Overall, realized investment reached 692.8 trillion rupiah, a 13% increase from 2016.