Tue, 28 Jun 2011

Jakarta (ANTARA News) - Money market analyst Farial Anwar has predicted that foreign investment in the domestic market would increase in the face of upward trend of the country`s economic growth.

He said here on Monday that foreign investors, particularly those from United States and European countries were optimistic with their investment in the Asian countries, Indonesia in particular.

Indonesia is expected to experience an economic growth by seven percent, Farial who is also Currency Management Group director, said.

He said that Indonesia had a number of interesting factors such as the rupiah interest rate which reached 6.75 percent, guaranteed security stability and the convenience in making investment.

Foreign capital which entered the domestic market so far was only invested in the financial market, such as stocks market, money market and Bank Indonesia (BI/the central bank)`s instrument.

This is because the hedge funds which have the money make investment only for short-term, he said.

Therefore, the government should be able to attract foreign investors to make their investment in the long-term or real sector such the establishment of factories that would offer jobs and incomes to the people.

"We believed that the government was moving towards that end so that the national economy would grow well," he said.