The flow of foreign direct investment (FDI) into Indonesia rose significantly in the second quarter of this year. (Photo: AFP)

Jakarta (VNA) – The flow of foreign direct investment (FDI) into Indonesia rose significantly in the second quarter of this year from tiny gains in the first three months, reported the country’s Investment Coordinating Board.

FDI in the country during April-June picked up 15.5 percent year-on-year to 8.2 billion USD. Meanwhile, growth in the first quarter was only 6 percent. The incoming FDI excluded capital in banking and oil and gas sectors.

In the second quarter, Singapore was the largest investor in the country, followed by Japan and China. Most of the FDI capital was poured into basic metals, mining and public services.

Improving the business climate is among Indonesian President Joko Widodo’s key policies. The country aims to lift economic growth from 5 percent this year to 7 percent soon.

Last year, President Joko Widodo declared to open the door for foreign businesses to invest in tens of economic sectors, a move described by Chairman of the Investment Coordinating Board Thomas Lembong as the most vigorous change in the country in the past 10 years.

In an interview with Reuters earlier this month, President Widodo said Indonesia will loosen regulations on foreign investors’ ownership rights as from August.

In May, Standard & Poors (S&P) rating agency raised Indonesia's credit rating to investment grade with stable outlook. S&P said the Indonesian government has used effective measures to stabilise public finance, however, the country needs to improve management issues like corruption.-VNA