The mood surrounding foreign direct investment in Indonesia continues to look good, even before international credit ratings bestow official investment grade status. According to investment board BKPM, Indonesia is well on target to reach Rp 130 trillion (US$14.4 billion) in FDI by the end of 2010, with Rp 111 trillion already received. The three largest investors are Britain (including the British Virgin Islands), Malaysia and Singapore who prefer to put their money into projects in Banten, Jakarta and West Java. Construction, mining, transportation, telecommunications, food and agriculture have seen the largest increases this year.

Indonesia has previously said it needs to bring in Rp 550 trillion ($61.6 billion) in foreign investment by 2014. This would assist the government in funding $140 billion in infrastructure partnerships essential to the country’s future progress, of which the government will fund 35%.

Achieving official investment grade would lower borrowing costs for the government and bring Indonesia into line with the ‘BRIC’ countries (Brazil, Russia, India & China), a grouping with which it is increasingly associated in investment circles.

source & article: The Business Times (Singapore)