The Indonesia Investment Coordinating Board (BKPM) expects that investments in the second quarter of 2013 will grow by 25 percent to IDR 96.13 trillion (USD $9.6 billion) compared to Q2-2012. Although Indonesia's economic growth is under threat of slowing down to below an annual growth rate of six percent, the government agency still believes that total investments in 2013 can meet the target of IDR 390 trillion (USD $39 billion). Investments in Q1-2013 were recorded at IDR 93 trillion.
In order to increase investments and meet this year's target, the Indonesian government should put more effort in infrastructure development (roads and harbours) as well as limit the wage increases of workers. According to the BKPM, many foreign companies (for example from China) are interested to invest in Indonesia but are concerned about these two issues.
Tomorrow (Tuesday, 23/07), the BKPM is expected to announce the official results of investments in Q2-2013.