4/28/2021 9:25:11 AM GMT | By Pablo Piovano
Economist at UOB Group Enrico Tanuwidjaja and Haris Handy assess the latest FDI figures in Indonesia.
Key Quotes
“Indonesia’s direct investment rose by 4.3% y/y in January – March 2021 period vs. 3.1% in the last quarter of 2021, underpinned by the positive performance of foreign direct investment (FDI) despite a contraction in domestic direct investment (DDI) during the same period. The data from Investment Coordinating Board Indonesia (“Badan Koordinasi Penanaman Modal” – BKPM) showed FDI grew by 14.0% y/y to IDR 111.7tr (equivalent to USD 7.7bn, using 2021 national budget IDR exchange rate assumption of IDR 14,600 per USD) in 1Q21 vs. 4Q20’s 5.5%. The rebound came as the global economy is slowly recovering from the COVID-19 and as Indonesia’s government begun to implement the Omnibus Law (on jobs creation) by issuing derivatives regulation (Presidential Regulation No. 10, 202