Jakarta banking on FDI for economic growth

Jakarta

INDONESIA'S government is counting on a surge in foreign direct investment to help cushion the impact of high interest rates at home and sluggish demand for commodities among its biggest overseas markets.

Finance Minister Bambang Brojonegoro told investors on Tuesday that renewed market confidence following efforts to roll back expensive entitlements such as fuel subsidies will draw foreign capital. Massive spending on ports, electricity and social services will help drive growth back up to rates not last seen since the tail end of the commodity boom.