A 41% rise in foreign direct investment has seen new funds flow into Indonesia’s transport, communications, warehousing and mining sectors, creating excitement that the country’s reputation as an investment hotspot is growing.

The country’s Investment Coordinating Board (BKPM) announced that foreign direct investment (FDI) was up 41% compared to the first quarter of 2009, a total of Rp 35.4 trillion (US$3.92bn). The greatest source of overseas money was Singapore, followed by companies registered in Mauritius (an Indian Ocean tax haven) and the United States.

The rise in foreign investment, however, was met by a 25% fall in domestic investment over the same period, though BKPM is planning a nationwide promotional campaign this month to remedy this. Overall investment in Indonesia was still up by 25%, employing 123,000 people in a total of 574 projects.

source & article: The Jakarta Globe