'RI to see a rebound after global upturn'

'RI to see a rebound after global upturn'

JAKARTA: Indonesia is likely to see a rebound in foreign
direct investment (FDI) inflow after the global upturn, according
to James Castle, chairman of business consultancy Castle Asia.

"Because of the elections ... I think next year is going to be
very much like this year. I don't see much change," Castle said
on the sidelines of the UNCTAD seminar. "So I think in 2005, when
the new government is well established, then everything should
improve."

Risaldi Kasri, deputy chairman for investment promotion at the
Investment Coordinating Board (BKPM), said that even though
Indonesia recorded negative growth in FDI inflow in 2002, the
situation was still better than the previous year.

In 2002, FDI inflow into Indonesia contracted by $1.523
million, meaning that the value of foreign-owned businesses that
relocated out of the country was $1.523 million greater than the
value of businesses entering the country. In 2001, the FDI inflow
had contracted by $3.279 million.

Among the 10 member countries of the Association of Southeast
Asian Nations (ASEAN), Indonesia was the only one to record
negative growth in FDI inflow.

Malaysia, which was one of the best performers in 2002 in
attracting FDI, recorded a 478 percent jump in FDI inflow. -- JP