FDI Plunges

Nov 17th, 2006, in Business & Economy, by

Foreign direct investment (FDI) is down by 48% January to October from last year.

The decline in the value of realized foreign investment projects between January and October of 2006 period by 47.6% year on year was due mainly to “bad luck” says presidential spokesman Dino Patti Djalal.

There has indeed been a decline in foreign investment. Sometimes we are lucky, sometimes we are unlucky. We however continue to convey the message to investors that Indonesia is a good place to invest in.

Dino said ‘nay’ to the idea that the decline in the foreign investment value was evidence that the government had failed in the economic area, saying instead that the country’s macro-economic position this year had improved and that president Susilo Bambang Yudhoyono’s frequent trips abroad to drum up new investments were not useless but that the problem was that foreign investors could not be forced to put their money here.

Despite in the drop in new investment the number of workers employed in foreign investment projects increased, according to the National Investment Coordinating Agency (BKPM). 191,473 new workers gained employment during the January-October period in 2006 compared with 133,011 in 2005. antara

5 Comments on “FDI Plunges”

  1. Tomaculum says:

    Wondering why?
    Just look around! Don’t need economic/business knowledge.

    “We however continue to convey the message to investors that Indonesia is a good place to invest in.”

    Nobody will think twice (or three or four times) before investing in a country with such “peacefull” and “stable” images like Indonesia. Tendency to radicalism, bureaucracy, curroption, weak government etc, etc. Wow, really attractive signals to invest!

  2. Andrew says:

    FDI Plunges? whoa, that’s a shocker.

    To be honest, I myself would take my money elsewhere if I had to invest it.

    With all those morons, idiots, and barbarians causing destruction everywhere, it just costs too much to invest in Indonesia – and even strong nationalism won’t help anymore.

    Don’t blame the investors, blame those imbeciles.

  3. Oigal says:

    It has taken three months just to get a KITAS renewed, not that there was a problem just waiting for the signatures to make it happen…Oh no need for extra payments or agents..Bullsh*T

  4. Shiva says:

    If investors are treated as if they came from a third world, then why the fuss and bother to invest here.

  5. Dimp says:

    Hi Shiva,

    I think it’s not that they were treated like they come from a third world country, but the fact that Indonesia has one of the most corrupt bureaucracy, that has no clear corporate governance, and very low respect for the law that really hinder investors to put his/her money in Indonesia. Why would you like to invest your money in Indonesia when you can invest somewhere safer with brighter future.

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