F

oreign direct investment (FDI) in Indonesia may double the average growth rate of FDI going into other emerging markets, which was estimated to have reached around 10 percent a year, Investment Coordinating Board (BKPM) chief Mahendra Siregar said.

'€œFDI in Indonesia has been growing at more than 20 percent a year. Eight to 10 percent is much lower than what we have been achieving. Last year, our FDI grew by about 22 percent year-on-year,'€ Mahendra told reporters on Tuesday on the sidelines of the launch of the three-day Annual Investment Meeting (AIM) forum in Dubai, United Arab Emirates (UAE).

An investment report, published by the AIM forum in cooperation with the Financial Times'€™ fDi Intelligence division, estimates the Greenfield FDI in emerging markets will grow by about 8 percent annually over the next five years, while FDI flows are expected to increase by about 10 percent annually during the same period.

'€œOur target this year is to have our foreign investment grow by at least 15 percent,'€ Mahendra said. BKPM data shows that Indonesia secured Rp 272.6 trillion (US$24.14 billion) in FDI last year.

Indonesia'€™s achievement in attracting foreign investment was recognized by the AIM congress, with the BKPM winning a Foreign Direct Investment award for the second-best performance, after China'€™s Beijing Investment Bureau, in the Asia-Pacific region.

Indonesia, according to the report, was among eight emerging markets that made it into the top 10 FDI recipients last year. Others included China, Russia and India.

Mahendra said he would update investors on current Indonesia'€™s macroeconomic conditions and financial stability during the AIM meeting. '€œOur current account is improving and inflation is now under control. We'€™ve earned the trust of our investors for our macroeconomic stability, which in turn has attracted portfolios and direct investment and led to a better performance of the rupiah,'€ he said.

Mahendra also gave his assurances that the presidential election, which is scheduled for July 9, would not disrupt the country'€™s investment atmosphere.

'€œThe political situation might heat up, but the election will not be an issue to slow our economy or discourage investors '€” given the stability in macroeconomic, financial and security factors.

'€œLooking at both the domestic and foreign investments that have been disbursed, this election year may even prove to be a positive thing,'€ he said.

The AIM, now in its fourth year, is an annual event focusing on FDI in emerging markets, defined as all developing and transition economies. It is organized by the UAE'€™s Ministry of Economy and is attended by both government officials and private business players from across the globe. It expects to welcome 10,000 attendees from 100 countries this year.