Indonesia posts year's first FDI growth in third quarter
|10/23/2020 | 01:15am|
JAKARTA (Reuters) - Indonesia's incoming foreign direct investment (FDI) grew for the first time in three quarters in the July-September period and could continue to rise next year helped by a new deregulation law, its investment board chief said on Friday.
The Investment Coordinating Board (BKPM) recorded a total of 106.1 trillion rupiah ($7.24 billion) worth of FDI in the third quarter, excluding banking and oil and gas sectors, up 1.1% on an annual basis.
Singapore, China excluding Hong Kong and Japan were the main sources of FDI, with $2.5 billion, $1.1 billion and $0.9 billion in investments, respectively, BKPM chief Bahlil Lahadalia said in a virtual news conference.
Top sectors benefiting from FDI were base metals, transport, warehousing and telecommunication and utilities, BKPM data showed.
"I assure you investment realisation in 2021 will be higher than 2020," Bahlil said.
He noted the government's flagship Job Creation law passed by parliament earlier this month should boost appetite for investment in Southeast Asia's largest economy.
The jobs legislation, a revision of more than 70 existing laws that was passed on Oct. 5, is designed to remove longstanding impediments to doing business by cutting red tape, easing restrictions on foreign investment and boosting labour market competitiveness.
While the government says it will lead to widespread employment generation, trade unions, student groups, academics and civil society groups have held protests across the country against a law they say harms protection for workers and the environment.
($1 = 14,645.0000 rupiah)
(Reporting by Gayatri Suroyo and Tabita Diela; Editing by Muralikumar Anantharaman and Sam Holmes)