Actual Jan-Oct FDI In Indonesia +53% On Yr To $13.95B: Official

Jakarta, Indonesia | December 03, 2008 by D-8 Secretariat

The actual FDI in Indonesia rose 53% to $13.95 billion

The actual foreign direct investment in Indonesia rose 53% to $13.95 billion in the first 10 months of 2008 from a year earlier, the chairman of the official investment board Muhammad Lutfi said.

Lutfi told Dow Jones Newswires late Thursday that new investment spending by local investors during the same period, however, fell 51% to $1.66 billion.

He said that the largest investments by both foreign and domestic investors during the period were in the telecommunications, food, plantation, electronics, and chemical industries.

D-8 welcomes this news to encourage more economic interaction among the member countries. D-8 focuses on pushing intra-trade and enhancing economic cooperation as its a direction in the future. D-8 has accepted a business roadmap placing emphasis on intra trade for implementation by all member states in the recent 6th Summit in Kuala Lumpur, Malaysia. Secretary General of D-8, Dipo Alam, said the business roadmap, which charts the trade direction for all member states for the next 10 years, would leverage on the rich natural resources and full potential of the eight member countries in an effort to boost intra-trade between the countries.

“The total trade of D-8 nations to the world reached US$1 trillion last year while intra-trade between member states was only US$60 billion. This accounts for only five percent to our trade to the world. There is potential for intra-trade to grow,” Alam said. “This is especially so with some D-8 members being oil and gas producing countries. Our combined population is 930 million, so the market is there. Taking all these into account, we have come up with a business roadmap and it would be declared at this summit,” he said.

Alam said the roadmap was aimed at increasing intra-trade between members states from the current five percent to at least 10 to 15 percent. “We believe we can achieve this target taking into account the robust economic growth of member states. The roadmap will place emphasis on three areas,” he said. The three areas listed by Alam were the signing of preferential trade agreement, customs agreement and visa agreement between member states, all aimed at fostering better trade exchange between the eight nations.

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