January 22, 2013 / 3:17 AM / 5 years ago

Indonesia FDI surges 26 pct to record high in 2012

JAKARTA, Jan 22 (Reuters) - Indonesia’s foreign direct investment surged 26 percent in 2012 from a year ago to a record level, driven by the mining, transport and chemical sectors, the country’s investment board said on Tuesday.

Direct investment in the final quarter of 2012 was 56.8 trillion rupiah ($5.91 billion), up 22.9 percent on an annual basis, a steady pace after 22 percent growth in the previous quarter.

Indonesia drew strong portfolio funds and FDI flows last year after regaining investment grade status from two ratings agencies.

Investment, which accounts for about 30 percent of Southeast Asia’s largest economy, has been the second key driver of growth behind buoyant domestic demand. The government expect gross domestic product to expand 6.3 percent in 2012.

Strong investment has led to a surge in imports of capital goods in recent months which has widened the country’s current account deficit and put further pressure on the already weakened rupiah. ($1 = 9617.5 rupiah) (Reporting by Adriana Nina Kusuma; Writing by Rieka Rahadiana; Editing by Alex Richardson and Neil Chatterjee)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below