'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