In a much anticipated development, Asian powerhouse China has become a top investor in Indonesia as it outpaces older rivals.

Realized investment from Chinese companies in Southeast Asia’s biggest economy rose to US$2.6 billion last year, from $628.3 million in 2015, according to full-year investment data released by the Investment Coordinating Board (BKPM) on Wednesday.

This result improved China’s position from the ninth-largest investor to the third, beating traditional major investors such as Malaysia, the Netherlands and South Korea.

Amid slow domestic and global economic growth, total investment from 121 countries rose 12.4 percent to Rp 612.8 trillion (US$45.97 billion) in 2016 from the previous year.

Sector wise, 2016’s investment biggest figure was largely driven by funds channeled into the chemical and pharmacy sector, followed by food, electricity, power generation and mining.

BKPM head Thomas Lembong said the leap in Chinese investment was in line with the country’s push to invest overseas, as it was shifting its economy from export-oriented to domestically consumption-driven.

“Chinese investment increased drastically in line with their big investment across Asia Pacific,” he said. “It has become the biggest investor in several countries, but not yet in Indonesia. So its investment can still jump.”

In 2014 alone, the world’s second-biggest economy invested $870 billion globally, including $29 billion in the energy, transportation and mineral sectors in Indonesia, according to Heritage Foundation data.

Secretary-general of Chinese Chamber of Commerce in Indonesia, Liu Cheng, recently said China’s investment could hit a higher figure in the future, as in past years, much of it had been channeled through Singapore and Hong Kong-listed firms. Chinese firms still had $3 billion in the pipeline to build ferronickel smelters in the near future, he added.

A notable rise was also contributed by Japan, which nearly doubled its investment to $5.4 billion last year, enabling it to become the second-largest spender, from the third-biggest in 2015.

Chinese firms have invested mostly in nickel smelters in Sulawesi and power plants that have contributed about a quarter to Indonesia’s overall electricity supply.

Meanwhile, Japanese businesses spent a sizeable amount in the chemical, steel and automotive sectors, according to the BKPM.

President Joko “Jokowi” Widodo has been cozying up to the two countries during his two years in office, with funding lobbies for infrastructure projects, including the Bandung-Jakarta high-speed railway, various ports and power plants.

Indonesian Chamber of Commerce in China (Inacham) chairman Liky Sutikno warned that it would be necessary for the government to maintain a conducive investment climate, particularly amid heated political tension prior to the February gubernatorial election in Jakarta leading to sectarianism and timeline constraints to execute investment projects. Indonesia is competing with other countries, including Vietnam, Malaysia and Myanmar, to lure investment.

“Investors eye the best return and lowest risk. If we have big returns but also big risks, that’s not what they want,” he said.

Economist Mohammad Faisal from the Center of Reform in Economics (CORE) urged the public and government to scrutinize contract clauses involving Japan and China to ensure they transfer technology and absorb local materials.

“Though their investment increased, we have to be mindful of the impact they may have on other aspects, so we need to make sure the contract clauses also benefit us,” he said.

This year, it is expected that materialized investment will reach Rp 678.7 trillion, up 14.1 percent from last year’s target of Rp 594.8 trillion.

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