Market News

    Indonesia FDI up 16.2% y-o-y in 3Q on rising base metals investment

    Indonesia booked 196.2 trillion rupiah (RM58.9 billion) worth of foreign direct investment in the third quarter, up 16.2% from a year earlier, according to data on Friday from its investment ministry, which kept records in rupiah terms.

    Using the ministry's official conversion, the third-quarter FDI was equivalent to US$13.3 billon. The data excludes investment in banking and the oil and gas sectors.

    Southeast Asia's largest economy has seen a jump in FDI in recent years as it attracts investment in the mineral processing industry, though authorities have cautioned that elections in February may put a pause on companies' investment decisions.

    The ministry's Friday data showed an acceleration in the third quarter FDI growth. FDI rose 14.2% on a yearly basis in the second quarter.

    There was US$3.3 billion of investment in the base metals industry in the third quarter, the biggest recipient of FDI, followed by chemical and pharmaceutical industry and mining.

    Singapore, China and Hong Kong were the biggest sources of FDI.

    Source: Investing