Mon, 14 Mar 2011
BI Eyeing 42% Jump in Foreign Investment

From: The Jakarta Globe
By Dion Bisara

Nusa Dua, Bali. Bank Indonesia is bullish that foreign direct investment this year will surge 42 percent to $14.5 billion on the back of growing optimism about Indonesia, but it expects capital market inflows to fall as advanced economies recover.

“The confidence about our economy has built up and we are glad to see this trend,” Budi Mulya, a deputy governor at the central bank, told the Jakarta Globe on the sidelines of a high-level conference on Asian inflows in Nusa Dua, Bali.

But this year, FDI growth will likely outpace capital market inflows as the US economy is returning to growth, meaning the money will fly back to safe-haven assets from riskier bets in emerging markets, he said. But the Indonesian government much prefers direct investment to inflows to capital markets, which are far more liquid and easier to withdraw.

Total capital inflows to Indonesia have increased sharply over the past two years. They plunged to minus $1.8 billion in 2008 during the global financial crisis, but skyrocketed to $26.2 billion last year as investors were drawn to high-yielding assets.

The country saw $15.2 billion in stock and bond inflows in 2010, while direct investment was $9.8 billion.

However, last year’s market inflows were driven up by “hot-money” in short-term speculative investments, prompting concerns that the funds could suddenly flow out of the country, hurting the financial market’s stability.

Bank Indonesia has issued a number of policies to encourage longer-term investments, including lengthening maturities for its debt papers and introducing minimum holding periods, driving investors out of a one-month BI note that had been popular for its high yields and liquidity.

Also attending the conference was Stefan Koerberle, the World Bank’s country director for Indonesia. To attract even more foreign direct investment, he said, the government must address infrastructure bottlenecks while trimming regulations and raising transparency, key hurdles to investment. He added that transportation projects were especially important.

Jeffrey Frankel, Harpel professor of capital formation and growth from Harvard University, said the lack of infrastructure left Indonesia vulnerable to missing out on investment from abroad.

Gita Wirjawan, head of the Investment Coordinating Board (BKPM), said the country was trying to cope with foreign direct investment requirement.

“We keep fixing our regulations. In fact, I expect the land acquisition law to be finished this year.”



News Search/Filter
Transaction Rates
15 Oct 18
Buy
Sell
AED1
4,143.74
4,143.74
AFN1
200.32
200.32
ALL1
140.57
140.57
AMD1
31.34
31.34
ANG1
8,577.48
8,577.48
AOA1
50.49
50.49
ARS1
414.45
414.45
AUD1
10,816.83
10,816.83
AWG1
8,455.49
8,455.49
AZN1
8,939.72
8,939.72
BAM1
9,142.46
9,142.46
BBD1
7,609.93
7,609.93
BDT1
181.79
181.79
BGN1
8,998.55
8,998.55
BHD1
40,370.69
40,370.69
BIF1
8.50
8.50
BMD1
15,219.87
15,219.87
BND1
10,792.64
10,792.64
BOB1
2,202.66
2,202.66
BRL1
4,026.19
4,026.19
BSD1
15,219.87
15,219.87
BTC1
97,625,714
97,625,714
BTN1
206.78
206.78
BWP1
1,426.04
1,426.04
BYN1
7,157.71
7,157.71
BZD1
7,574.97
7,574.97
CAD1
11,686.09
11,686.09
CDF1
9.36
9.36
CHF1
15,360.50
15,360.50
CLF1
607,628.35
607,628.35
CLP1
22.39
22.39
CNH1
2,197.88
2,197.88
CNY1
2,198.70
2,198.70
COP1
4.91
4.91
CRC1
25.62
25.62
CUC1
15,219.87
15,219.87
CUP1
591.06
591.06
CVE1
158.99
158.99
CZK1
681.54
681.54
DJF1
85.48
85.48
DKK1
2,356.48
2,356.48
DOP1
305.01
305.01
DZD1
128.61
128.61
EGP1
848.16
848.16
ERN1
1,014.33
1,014.33
ETB1
550.62
550.62
EUR1
17,579.86
17,579.86
FJD1
7,046.20
7,046.20
FKP1
19,942.60
19,942.60
GBP1
19,942.60
19,942.60
GEL1
6,219.83
6,219.83
GGP1
19,942.60
19,942.60
GHS1
3,123.42
3,123.42
GIP1
19,942.60
19,942.60
GMD1
307.78
307.78
GNF1
1.68
1.68
GTQ1
1,967.14
1,967.14
GYD1
72.77
72.77
HKD1
1,942.61
1,942.61
HNL1
632.05
632.05
HRK1
2,373.28
2,373.28
HTG1
218.09
218.09
HUF1
54.21
54.21
IDR1
1.00
1.00
ILS1
4,189.15
4,189.15
IMP1
19,942.60
19,942.60
INR1
206.54
206.54
IQD1
12.77
12.77
IRR1
0.35
0.35
ISK1
130.79
130.79
JEP1
19,942.60
19,942.60
JMD1
114.05
114.05
JOD1
21,451.27
21,451.27
JPY1
135.63
135.63
KES1
150.91
150.91
KGS1
222.05
222.05
KHR1
3.72
3.72
KMF1
35.73
35.73
KPW1
16.91
16.91
KRW1
13.44
13.44
KWD1
50,181.58
50,181.58
KYD1
18,269.84
18,269.84
KZT1
41.07
41.07
LAK1
1.78
1.78
LBP1
10.06
10.06
LKR1
89.71
89.71
LRD1
96.97
96.97
LSL1
1,047.42
1,047.42
LYD1
11,024.38
11,024.38
MAD1
1,610.93
1,610.93
MDL1
898.14
898.14
MGA1
4.30
4.30
MKD1
285.50
285.50
MMK1
9.53
9.53
MNT1
6.11
6.11
MOP1
1,886.43
1,886.43
MRO1
42.63
42.63
MRU1
423.95
423.95
MUR1
443.34
443.34
MVR1
985.09
985.09
MWK1
21.03
21.03
MXN1
806.06
806.06
MYR1
3,663.49
3,663.49
MZN1
251.56
251.56
NAD1
1,045.68
1,045.68
NGN1
41.92
41.92
NIO1
473.62
473.62
NOK1
1,862.20
1,862.20
NPR1
129.23
129.23
NZD1
9,893.52
9,893.52
OMR1
39,533.47
39,533.47
PAB1
15,219.87
15,219.87
PEN1
4,564.36
4,564.36
PGK1
4,534.22
4,534.22
PHP1
281.22
281.22
PKR1
114.36
114.36
PLN1
4,089.78
4,089.78
PYG1
2.56
2.56
QAR1
4,182.10
4,182.10
RON1
3,771.48
3,771.48
RSD1
148.77
148.77
RUB1
230.62
230.62
RWF1
17.37
17.37
SAR1
4,057.49
4,057.49
SBD1
1,917.31
1,917.31
SCR1
1,117.46
1,117.46
SDG1
597.54
597.54
SEK1
1,696.70
1,696.70
SGD1
11,039.35
11,039.35
SHP1
19,942.60
19,942.60
SLL1
1.81
1.81
SOS1
26.29
26.29
SRD1
2,040.74
2,040.74
SSP1
116.83
116.83
STD1
0.72
0.72
STN1
717.24
717.24
SVC1
1,740.02
1,740.02
SYP1
29.53
29.53
SZL1
1,045.68
1,045.68
THB1
464.87
464.87
TJS1
1,616.13
1,616.13
TMT1
4,348.55
4,348.55
TND1
5,354.77
5,354.77
TOP1
6,600.43
6,600.43
TRY1
2,581.78
2,581.78
TTD1
2,258.93
2,258.93
TWD1
492.43
492.43
TZS1
6.65
6.65
UAH1
545.28
545.28
UGX1
4.02
4.02
USD1
15,219.87
15,219.87
UYU1
461.75
461.75
UZS1
1.86
1.86
VEF1
0.06
0.06
VND1
0.65
0.65
VUV1
136.78
136.78
WST1
5,808.68
5,808.68
XAF1
26.80
26.80
XAG1
222,658.75
222,658.75
XAU1
18,557,881.06
18,557,881.06
XCD1
5,631.67
5,631.67
XDR1
21,285.46
21,285.46
XOF1
26.80
26.80
XPD1
16,254,298.56
16,254,298.56
XPF1
147.31
147.31
XPT1
12,776,926.62
12,776,926.62
YER1
60.79
60.79
ZAR1
1,046.53
1,046.53
ZMW1
1,245.41
1,245.41
ZWL1
47.21
47.21
Taxation Exchange Rates
31 Aug 16 - 06 Sep 16
USD 1
13,232.00
AUD 1
10,043.30
CAD 1
10,213.70
DKK 1
1,999.40
HKD 1
1,706.22
MYR 1
3,283.28
NZD 1
9,623.63
NOK 1
1,605.23
GBP 1
17,433.70
SGD 1
9,757.68
SEK 1
1,569.45
CHF 1
13,631.10
JPY 100
13,101.00
MMK 1
11.01
INR 1
197.29
KWD 1
43,920.70
PKR 1
126.23
PHP 1
285.00
SAR 1
3,528.53
LKR 1
91.12
THB 1
382.08
BND 1
9,756.53
EUR 1
14,885.50
CNY 1
1,987.61

Okusi Associates: Indonesian Business & Management Services