Indonesia FDI commitment growth slowed last year, may pick up in 2015

Jakarta

GROWTH in foreign investment commitments in Indonesia slowed in 2014, an election year, but interest is expected to pick up this year with a push by the new administration to speed up infrastructure projects and reduce red tape.

Foreign direct investment (FDI) commitments to South-east Asia's largest economy rose 13.5 per cent for full-year 2014, the Investment Coordinating Board (BKPM) said on Wednesday, much slower than the 22.4 per cent increase in 2013.

The head of the board said investors were in a "wait and see" mood last year. Parliamentary elections were held in April and presidential polls in July, with both candidates initially claiming victory. Commitments rose 10.5 per cent in the October-December period from a year earlier, compared with 16.9 per cent in the third quarter, following a slowing trend…