Indonesia says FDI commitments in 2014 up 13.5%

[JAKARTA] Indonesia said it attracted 78.7 trillion rupiah (US$6.3 billion) of direct foreign investment commitments in October-December, during which Joko Widodo became president, which is 0.5 per cent more than it drew in the previous quarter.

Fourth-quarter and full-year 2014 commitments were announced on Wednesday by the Investment Coordinating Board (BKPM).

The board reports commitments of foreign direct investment (FDI) in rupiah terms.

It said that for all of 2014, Indonesia received foreign investment commitments of 307 trillion rupiah, or 13.5 per cent more than made in 2013. Last year's pace of increase was considerably slower than the 22.4 per cent increase in 2013.

During July-September 2014, FDI commitments were 78.3 trillion rupiah. Analysts said that number was held down because during the period, Indonesia held a closely-contested presidential vote, in which the loser, Prabowo Subianto, challenged the result.

Widodo, who has pledged to promote reform and boost investment, began a five-year term on October 20.

The fourth quarter FDI commitments were 10.5 per cent larger than one year earlier. The July-September commitments were 16.9 per cent more than the same period of 2013.

The main areas attracting FDI applications in 2014 were mining, food, and transportation, warehouse, and telecommunication.

The data from the BKPM does not include investments in the oil and gas sector, or in banking.

REUTERS