Foreign investors were particularly interested in investments in Indonesia's automotive (and components) industry, machinery and electronics. The automotive sector was target of most investments with USD $1.8 billion in the first semester of 2013.

Indonesia's manufacturing sector has seen growing foreign investments in recent years. The manufacturing sector's contribution towards total foreign investments was about 35 percent between 2010 and 2012 but grew sharply to 56 percent in 2013. For the country this constitutes a good development as it lacks a high quality manufacturing sector and, as such, needs to import most higher quality manufactured products from foreign countries.


Foreign Investment Realization (in USD million):

Sector      2012
Semester I
     2013
Semester I
Growth (YoY)
Agriculture    1,032.3      722.7      -30.0%
Mining    2,098.3    2,618.3        24.8%
Manufacturing    5,460.3    8,011.6        46.7%
Electricity, Gas & Water      749.3      688.3       -8.1%
Construction, Property and Real Estate      365.3      732.7     100.6%
Trade, Hotel and Restaurant      707.8      442.7      -37.5%
Transport, Warehouse & Communication    1,071.2      812.0      -24.2%
Other Services      481.4      192.4      -60.0%
Total Foreign Investments   11,966.0   14,220.7       18.8%

Source: Investor Daily

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