For­eign Di­rect In­vest­ment Up Amid Strength­en­ing Econ­omy: BI

Indonesia Expat - - BUSINESS TRENDS -

The coun­try’s cen­tral bank has an­nounced an in­crease in for­eign di­rect in­vest­ment in July, com­pared to the same pe­riod a year ear­lier. Bank In­done­sia Gov­er­nor Agus Mar­to­war­dojo re­ported FDI reached Rp.131 tril­lion (US$9.8 bil­lion) in July, up from Rp.124 tril­lion (US$9.3 bil­lion) and said it re­flects trust in the In­done­sian econ­omy. For­eign in­vestors have looked to­wards gov­ern­ment bonds, cor­po­rate bonds and the cap­i­tal mar­ket, he said as re­ported by Tempo. “In­done­sia as a de­vel­op­ing coun­try has be­come one of the favourite des­ti­na­tions for in­vestors aside from In­dia,” he said on Au­gust 4, as re­ported by Tempo. He warned the trend in weak­en­ing con­sumer de­mand has con­tin­ued through­out the year, but pre­dicted it to im­prove in the sec­ond se­mes­ter along­side over­all eco­nomic im­prove­ment. “The rea­son is on­go­ing cor­po­rate and bank con­sol­i­da­tion that has af­fected peo­ple’s in­come,” he said. Mar­to­war­dojo is con­fi­dent In­done­sia will achieve its eco­nomic growth tar­get by the year’s end of around 5 to 5.4 per­cent, on the back of im­prov­ing trade bal­ances and cur­rency sta­bil­ity.

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