(From the Bangkok Post)
Foreign direct investment in Indonesia picked up last quarter, a sign President Joko Widodo’s reforms may be starting to increase interest in Southeast Asia’s largest economy.
Investment from overseas rose to US$7.9 billion in three months through December, up 7% from the previous quarter, the Investment Coordinating Board said in Jakarta on Thursday. It rose 3% in 2015 to $29.3 billion, after stagnating in 2014.
Stung into action by a decline in the rupiah, slumping demand for the country’s commodities and the slowest economic growth since 2009, Widodo, known as Jokowi, reshuffled his cabinet in August and began a series of reforms aimed at making it easier to do business.
While those measures have improved sentiment, fixing the red tape, corruption and lack of legal certainty that have long put off investors will probably take time. Read more