Indonesia expects slower growth in direct investment this year

Jakarta

DIRECT investment in Indonesian firms from foreign and domestic sources is expected to grow more slowly this year, the country's investment board chief said on Tuesday, noting that South-east Asia's largest economy had lost out to Vietnam in the regional competition to attract funds.

Thomas Lembong, chief of the Investment Coordinating Board (BKPM), said that total direct investment from both foreign and local investors will likely grow 12-14 per cent annually in 2016, excluding investment in banking, oil and gas sectors. That compares with 17.8 per cent growth in such investment in 2015.