The BKPM has pointed to Singapore and Malaysia as two potential investors, with the two countries boasting the highest investment realization and highest growth among the region last year.
Investment realization from the Association of Southeast Asian Nations (Asean) bloc grew 15 percent to $9.1 billion last year, from $7.93 billion a year earlier.
"Singapore has long been the source of foreign investment in Indonesia. BKPM's representative in Singapore will be focused on promoting investment in Indonesia. Apart from marketing the investment in Singapore, we'll also be more focus on attracting investment from Malaysia," Franky Sibarani, BKPM chairman, said in a statement on Thursday (25/02).
Malaysia's investment realization reached $3 billion, grew 73 percent last year compared to the same period a year earlier while Singapore's investment realization reached $5.9 billion last year, slightly dropped from $5.8 billion in the previous year.
This year, the agency aims to boost foreign and local investment to Rp 594.8 trillion, up 9.06 percent from the investment realization in 2015.
On the other hand, BKPM is also trying to boost outward direct investment — or investments from Indonesia to other countries — to other Southeast Asian countries, including Cambodia, Laos, Myanmar and Vietnam.
According to BKPM, Indonesia is ranked 44 of the 50 biggest investors in the world. The country has invested $7.8 billion and created 10,021 jobs in the past six years.
That compares with $112 billion received by the country in the same period, making Indonesia as the seventh biggest investment destination.
"Indonesia's position is far below Singapore which ranked 12, Malaysia ranked 18 and Thailand ranked 24. We are currently focused on raking inward investment," Franky said.
Franky said Indonesia's state-owned enterprises have started to explore the possibility to expand their businesses to Myanmar. However, he did mention the company's name nor any timeframe.