The Jakarta Post
Direct investments made by Indonesian companies abroad almost tripled in value last year, central bank data reveals. Although the latest development is considered positive, many business players argue that it reflects deteriorating investment conditions domestically.
As of the end of December 2011, Indonesian companies had invested a whopping US$7.7 billion in a variety of business sectors in Asia, the Americas and Africa. The investment value grew by 185 percent compared to $2.7 billion in 2010.
“Indonesian companies have begun to see that the domestic market has become saturated and therefore they are looking for new markets by expanding their businesses abroad,” said Sofjan Wanandi, chairman of the Indonesian Employers Association (Apindo).
The investments, he said, were made largely in other Asian countries and in South America. “This is all part of globali...