Indonesian foreign investment rises, companies plan share offerings
Meanwhile, more foreign capital continues to flow toward Indonesia and several of its companies are planning public offerings to raise more funds.
Indonesia was the third-biggest mover in the World Economic Forum’s 2010-11 Global Competitiveness Index rankings (up 10 places to 44th). The Jakarta Composite Index has trebled since a low point in October 2008, and the country seems to have escaped the effects of the Global Financial Crisis thanks to less reliance on Western export markets and a growing domestic demand.
Foreign direct investment grew 53% on-year to Rp35.6 trillion (US$4 billion) for the April-June period. Investors still have some concerns about corruption and rule of law, making equities more attractive than direct investment in plants and infrastructure, according to analysts. If plans meet expectations, around 20 companies will have raised $5 billion by the end of 2010; money they intend to use for paying off debts, updating equipment and expansion.
Among the companies planning share issues in the near future are: State-owned enterprises Krakatau Steel and Garuda Airlines, Bank Negara Indonesia and PT Bank Mandiri, and Indofood Sukses Makmur subsidiary PT Indofood CBP.
source & article: AFP via Channel NewsAsia
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