Foreign and Domestic Investments (in IDR trillion)

        2011
Semester I
      2012
Semester I
      2013
Semester I
Domestic Direct Investment       33.0       40.5       60.6
Foreign Direct Investment       82.6      107.6      132.2
Total Investment
     115.6      148.1      192.8

Foreign and Domestic Investments (annual percentage change)

       2011
Semester I
     2012
Semester I
     2013
Semester I
Domestic Direct Investment     50.7%     22.7%     49.6%
Foreign Direct Investment     16.3%     30.2%     22.8%
Total Investment
    24.4%     28.1%     30.2%

Source: Indonesia Investment Coordinating Board


Foreign investors are particularly interested to invest in Indonesia's transportation, communication, minerals, automotive, consumer goods, tourism and trade & retail sectors.

Siregar said that the BKPM is busy doing its homework to create a more conducive investment climate. This implies that several bottlenecks need to be resolved. The bottlenecks include infrastructure, land acquisition, bureaucracy, and legal certainty. The institution is also enhancing its one stop service for necessary permits.

Meanwhile, Indonesia's Vice President Boediono stated to expect economic growth of between 5 to 6 percent in 2014. A growth number above the six percent mark is difficult as the country needs to balance between financial stability and economic growth.

According to Boediono, inflation in 2013 will accelerate to about 8 percent (year-on-year) triggered by higher subsidized fuel prices and increases in non-rice food commodity prices.

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