Foreign Direct Investment Up Amid Strengthening Economy: BI
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.