Why Indonesia?
Investment opportunities include:
There are around 1,904,500 square kilometres of land divided into 17,508 islands inhabited by a population of 222 million people and more than 3,288.680
square kilometres of territorial waters. This provides a very large space for agriculture, fishery, forestry , and husbandry as prospective investment projects
which can support further secondary sectors such as industries of food and many others. Of course, with huge population, meaning high demand of
consumers' products, this country is also open to other opportunities of various manufacturing industries. Besides oil and gas, this land and territorial
waters also contain various and a large amount of mining materials such as nickel, tin, gold, silver, manganese, copper, iron ore, marble, quartz, limestone,
dolomite, benthonic, obsidian, kaolin, sulphur, natural stone/jewel, clay coal, granite, bauxite, silica sand, zeolit, andesit, pumice, calcite, and others.
Furthermore, in addition to infrastructures , other tertiary sectors of supporting industrial services for said investment projects also need to be developed.
Tourism , the locations of which are surrounded by natural resources with wonderful views, is a parallel project to be developed.
Source: Indonesia Investment Coordinating Board (BKPM)
Outlook Stable
Indonesia is following through on earlier policy intentions aimed at implementing a more aggressive structural reform agenda to address the weak
investment climate. Pragmatic macroeconomic policies have returned the economy to a stronger and broader-based GDP growth path of above 6% since
Q4 2006. The recovery in household demand, which constitutes over 60% of nominal GDP, should partially offset a slowdown in external demand, while the
up tick in local and foreign private sector investment support medium-term growth. On the external front, a strong build-up in official foreign exchange
reserves based on higher non-oil exports, buoyant portfolio debt and equity inflows and long-term equity investment inflows has provided a more
comfortable cushion to deal with possible shocks. Indonesia’s current account surplus of 2.8% of GDP in 2007 compared favourably with a ‘BB’ median
deficit of 2.8%.
Indonesia’s external resilience would benefit from accelerated efforts to build sustainable capital inflows in the form of foreign direct investment (“FDI”), as
a preferred alternative to possibly volatile portfolio flows. Export competitiveness will also need to be addressed in the near term with greater urgency to
improve the sovereign credit profile, as current account deficits are likely to reappear given Indonesia’s investment requirements as a developing economy.
Source: Bank Indonesia
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