Indonesia FDI accelerates to a new record high in Q2

Foreign direct investment (FDI) into Indonesia rose 39.7% annually in the second quarter of this year to 163.2 trillion rupiah (10.89 billion USD). (Photo: jakartaglobe.id)

Jakarta (VNA) – Foreign direct investment(FDI) into Indonesia rose 39.7% annually in the second quarter of this year to163.2 trillion rupiah (10.89 billion USD), the biggest climb in the pastdecade.

According to investment minister Bahlil Lahadalia, theFDI, which excludes investment in banking and the oil and gas sectors,accelerated from a 31.8% increase in the January-March period.

The growth was mostly supported downstream industrydevelopment in mining and petrochemical sectors that have entered theconstruction phase, he said.

Singapore, China and Japan were Indonesia's topsources of foreign investment for the period. The 39.7% rise was the biggestincrease for any quarter since 2011, according to Eikon Refinitiv's records.

The government will continue to focus on the metalprocessing sector and industries that uses renewable energy, Bahlil affirmed.

He reiterated that the government plans to banexports of bauxite and tin to promote investment into their processingfacilities onshore, part of a "reform" of foreign investment intoIndonesia.

Its export ban of nickel ore had successfullyattracted major investment, mostly from China, to produce metal and chemicalsused in electric car batteries extracted from nickel ore./.

VNA