Indonesian investment rose last quarter as mining, transportation and food companies started new operations or expanded existing ones.
Investment climbed 25.1 percent to 81.8 trillion rupiah ($8.5 billion) in the three months ended Sept. 30 from a year earlier, M. Chatib Basri, chairman of the Investment Coordinating Board, said in Jakarta today. In the first nine months of 2012, investments rose 27 percent to 229.9 trillion rupiah from a year earlier, the board said.
President Susilo Bambang Yudhoyono is increasing spending and wooing overseas funds to spur growth in Southeast Asia’s largest economy and create new jobs as more people enter the labor force. Companies such as Toyota Motor Corp. (7203) and Taiwan’s Foxconn (2038) Technology Group are mulling investment opportunities in Indonesia, and L’Oreal (OR) SA will expand a cosmetics factory this month, Basri said in September.
“Strong foreign direct investment will offset a slowdown in exports,” Basri said today. The agency forecasts total investments may be more than 300 trillion rupiah this year, exceeding its previous target of 290 trillion rupiah, he said.
Foreign direct investment climbed 22 percent to 56.6 trillion rupiah last quarter from a year earlier, mainly supported by companies in mining, chemical, pharmaceutical, transportation and telecommunication industries, the board said. Domestic investments during the July-to-September period rose 32.6 percent to 25.2 trillion rupiah, supported by mineral non- metals, food and textile industries, the agency said.
Singapore was the biggest contributor to third-quarter foreign investment, accounting for $1.5 billion. Indonesia is targeting foreign and local investment of about 500 trillion rupiah in 2014.
To contact the editor responsible for this story: Stephanie Phang at email@example.com