Nationalist hurdles threaten Indonesia's investment boom
WILL 2013 be the year when Indonesia's remarkable foreign investment boom finally tapers off?
Early indications suggest otherwise. The year has only just begun, and barely a week goes by before some large foreign corporation announces its intention to invest in the country or expand existing facilities.
According to the Investment Coordinating Board (BKPM), foreign direct investment (FDI) hit a record 221 trillion rupiah (S$28.7 billion) last year, up 26 per cent from 2011. Indeed, Indonesia has been the darling of foreign investors for several years, enjoying hefty annual increases since 2010.
Last year's spectacular performance was at least partly due to the heady optimism that followed the decision of rating agencies in late 2011 and early last year to award Indonesia an investment grade.