Trade & Investment

With full-year realised foreign direct investment (FDI) hitting a new record in 2014, Indonesia’s trade and investment flows have improved considerably over the last 10 years. The capital account deficit was brought back under 3% that year, and at the end of 2014 and in early 2015 the country reported a trade surplus after years in the red. Due to stronger economic growth and new policy initiatives, the uptick could become a sustained trend. However, risks remain. The government and monetary authorities need to keep a grip on policy, making sure they maintain discipline without being too strict. Early indications are that the new administration and the monetary authorities will work effectively towards achieving the right balance through consistent, steady improvements.

This chapter contains interviews with Franky Sibarani, Chairman, Indonesia Investment Coordinating Board; Ngalim Sawega, Chairman and Executive Director, Indonesia Eximbank; and SD Darmono, President Director, Jababeka.