BKPM reports rise in FDI approvals

JAKARTA: The Investment Coordinating Board (BKPM) has reported a 3.7 percent rise in foreign direct investment (FDI) approvals in the first nine months of this year compared to the same period last year.

The BKPM said in its monthly report that FDI approvals in the January-September period of the year rose from US$5.94 billion last year to $6.16 billion, with the most popular investment destinations being the trading sector and the metal, machinery and electronic industries.

Of the total amount, $845.7 million was earmarked for the expansion of existing projects, the board said.

Domestic investment approvals, however, declined sharply by 14.7 percent during the same period to Rp 15.9 trillion from last year's Rp 18.7 trillion.

The figures showed that the country is still struggling to attract investment, both foreign and domestic. This is in marked contrast to before the crisis when investment used to be the main engine of economic growth. -- JP