Oct. 20 (Bloomberg) -- Indonesia’s foreign and domestic investments increased last quarter as companies from Singapore and the U.S. boosted spending.
Investment rose 15.3 percent to 65.4 trillion rupiah ($7.3 billion) in the three months ended Sept. 30 from a year earlier, Azhar Lubis, deputy chairman of the Investment Coordinating Board, said in Jakarta today. The country attracted 181 trillion rupiah in the nine months through September, a 21 percent increase from a year earlier, he said.
President Susilo Bambang Yudhoyono aims to expand Southeast Asia’s largest economy at an annual average rate of 6.6 percent through the remainder of his term ending in 2014 by creating jobs and developing the country’s infrastructure. The central bank this month lowered its benchmark interest rate for the first time in more than two years to spur domestic demand as the global recovery weakens.
“Amid a volatile global economy, full of uncertainties in the U.S. and Europe, we still manage to post growth in investment realization,” Lubis said. “We are optimistic we can reach total investments of 240 trillion rupiah this year and it’s possible we can reach more than that.”
The investment board expects total investments to grow 15 percent in 2012, he said.
Domestic investment rose 14.5 percent to 19 trillion rupiah during the July to September period, led by foodstuff and plantation projects and spending on electricity, gas and water, the agency said. Foreign direct investment climbed 15.7 percent to 46.4 trillion rupiah in the same period, aided by transportation, telecommunication and mining.
Singapore was the biggest contributor to third-quarter foreign investment, accounting for $1.3 billion. Investment from the U.S. totaled $0.5 billion.
The $707 billion economy is forecast to expand 6.6 percent this year, with growth easing to 6.5 percent in 2012, Bank Indonesia Governor Darmin Nasution said Oct. 11.
--With assistance from Berni Moestafa and Greg Ahlstrand in Jakarta. Editors: Shamim Adam, Stephanie Phang
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