Indonesia expects 23% FDI growth this year

Indonesia aims to expand foreign direct investment (FDI) by 23% this year. Direct investment in the final quarter of 2012 rose 23%, taking full year FDI up 26% to around US$23 billion, reports Indonesia’s investment board.

Strong investment was driven by the mining, transport and chemicals sectors, showing firms shrugged off worries over policy uncertainty, corruption and weak infrastructure to seek returns in an economy growing at more than 6%.

Foreign inflows to the G20 economy have increased significantly since Indonesia regained investment grade status from two rating agencies a year ago. Investment makes up around 30 percent of the G20 economy.

Mining was the biggest sector, despite a series of new rules that limited foreign ownership and restricted exports. Freeport McMoran Copper & Gold Inc is the biggest existing mining investor.

Meanwhile, Indonesia is keen to draw investment in transport to improve strained infrastructure from airports to railways, and wants investment in chemical manufacturing to turn the country’s oil and natural gas output into higher value products.