Indonesia’s foreign and domestic investment rose last quarter as the metals, machinery, electronics, mining, transport, and communication industries boosted spending.
Investment climbed 18.7 percent to 83.3 trillion rupiah ($8.6 billion) in the three months ended Dec. 31 from a year earlier, M. Chatib Basri, chairman of nation’s the Investment Coordinating Board, said at a briefing in Jakarta today. Full- year investment in 2012 rose 24.6 percent to 313.2 trillion rupiah from a year earlier.
President Susilo Bambang Yudhoyono aims to lure more investment to reach an average economic growth target of 6.6 percent until the end of his second term, which ends in July 2014. Expansion in Southeast Asia’s largest economy grew more than 6 percent even as Europe’s crisis has hurt exports demand and an increase in imports triggered a trade deficit.
“BKPM, with other ministries and local governments, will work together to continuously improve service quality to the investor, simplify and speed up the license-service procedure,” Chatib said, referring to the investment board by its Indonesian-language acronym. “Hopefully we can achieve an investment realization target of 390.3 trillion rupiah in 2013, an increase of 37.7% compared to the investment realization in 2012.”
Foreign direct investment climbed 23 percent to 56.8 trillion rupiah, supported by funds to the metal, machinery, electronics, mining, transport, storage and communications sectors, the board said in a statement distributed at the briefing. Domestic investment during the October-to-December period rose 10.4 percent to 26.5 trillion rupiah, mainly in the transportation, communication, food, plantation, paper and printing industries.
Apple Inc. (AAPL:US) has been granted approval to open its first store in the country, Basri said, without providing further detail.
Singapore was the biggest contributor to fourth-quarter foreign investment, accounting for $1.4 billion. Funds from the South Korea and Japan totaled $1.4 billion, the agency said.
To contact the reporter on this story: Novrida Manurung in Jakarta at firstname.lastname@example.org; Widya Utami in Jakarta at email@example.com
To contact the editor responsible for this story: Stephanie Phang at firstname.lastname@example.org