(Updates with investment board comment in fourth paragraph.)
Jan. 19 (Bloomberg) -- Indonesia’s foreign and domestic investments increased last quarter on expansion of its mining, metals and telecommunication industries.
Investment rose 19 percent to 70.2 trillion rupiah ($7.7 billion) in the three months ended Dec. 31 from a year earlier, Gita Wirjawan, chairman of the Investment Coordinating Board, said in Jakarta today.
Indonesia won its second credit rating upgrade in five weeks yesterday as Moody’s Investors Service returned the country to investment level for the first time since the Asian financial crisis. President Susilo Bambang Yudhoyono is seeking to spur economic expansion by accelerating spending on projects from mass rapid transit systems to power plants and ports.
Indonesia’s investment this year may grow 15 percent to 290 trillion rupiah, Azhar Lubis, deputy chairman of the Investment Coordinating Board, said after the data was released.
Domestic investment during the October to December period rose 9 percent to 24 trillion rupiah, mainly supported by mining, paper and printing, the agency said. Foreign direct investment climbed 25 percent to 46.2 trillion rupiah into areas such as transportation, telecommunication and metals, it said.
For 2011 as a whole, investment gained 21 percent from a year earlier to 251.3 trillion rupiah, exceeding the agency’s target of 240 trillion rupiah.
Yudhoyono’s government estimates the economy expanded 6.5 percent in 2011. Moody’s move followed the decision by Fitch Ratings to bring Indonesia back to investment grade last month after 14 years of junk ratings.
--With assistance from Berni Moestafa in Jakarta. Editors: Rina Chandran, Sunil Jagtiani
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