The Jakarta Globe reports a growing interest in Indonesia from large multinationals, especially those from the Middle East and India. Not surprisingly, most investments have been in the resources and energy sectors, but companies are also moving into the manufacturing, supply chain and retail sectors.

Many of the region’s economic powerbrokers are meeting in Jakarta this week for the World Economic Forum on East Asia 2011. The report quotes a representative from Abraaj Capital, the largest private equity group in the Middle East, North Africa and South Asia with about US$6.3 million in funds. They were impressed by Indonesia’s steady growth (over 6% last year and this year so far), sound monetary policies and inflationary curbs, all of which made Indonesia a major investment destination after China and India.

Indian firms the Essar Group, Tata Power and Reliance Power are looking at Indonesia’s resources and energy sectors to meet their country’s growing energy demands. Essar last year agreed to buy the Aries coal mine in East Kalimantan province, and is also considering investments in oil and gas, power plants and coal bed methane projects. US-based Carlyle Group, another private equity firm, also beat Japanese food & beverage giant Suntory to make its first direct investment in Indonesia, spending US$200 million for a 25% stake in GarudaFood.

source & article: the Jakarta Globe