FOREIGN INVESTMENT: China Strengthens Penetration Into Indonesia

JAKARTA: China intends to increase its investment Investors in Indonesia due to see Indonesia as a potential market.

Based on data from the Investment Coordinating Board (BKPM), the realization of Chinese investment in Indonesia during 2007-2011 amounted to U.S. $ 498.81 million.

Chinese investment in Indonesia is still below 0.5% of total capital flows to foreign countries in the last 5 years.

These conditions represent an opportunity and challenge to Indonesia. Country's outward investment is very large. The majority of investments directed to their neighboring countries, like Vietnam, Myanmar and Taiwan.

Outward investment flows (investment outflow) China is the third largest country in Asia, after Japan and India.

Investors from countries of the world's largest population is mostly invested in the mining, food and beverage industry and basic metal industries, metal goods, machinery, and electronics.

Actual investment in the mining sector in the last 5 years to reach U.S. $ 153.99 million, the food industry worth U.S. $ 103.79 million, while basic and other metals industry amounted to U.S. $ 131.33 million.

Sources: http://regionalinvestment.bkpm.go.id