Jakarta (ANTARA) – Bank Indonesia (BI) expects foreign investment inflows to Indonesia to continue to increase and reach US$19.1 billion in 2021 from US$11 billion in 2020.
“Indonesia is one of the primary destinations of global portfolio investment,” BI Governor Perry Warjiyo said here on Thursday, while announcing the results of the BI’s board of governors meeting.
Factors that will boost foreign investment in developing countries, including Indonesia, include the global economic recovery, especially after the start of the COVID-19 vaccination program, he observed.
Furthermore, the continued fiscal and monetary stimulus measures taken in many countries and the low interest rate trend have prompted an increase in global liquidity, he remarked.
Joe Biden’s inauguration as the 46th US President has also created a favorable climate for the global economy, especially the global financial market, he added.
Warjiyo said under-pressure global financial markets have shown a positive growth after Biden’s inauguration on Wednesday (January 20, 2021).
“We are optimistic about a conducive global financial market condition, the flow of foreign investment to developing countries (is expected to) increase, and Indonesia is lucky to become one primary destination of portfolio investment,” he remarked.
As of January 19, 2021, the inflow of foreign investment to the domestic financial market has continued to increase and reached US$5.1 billion, including the issuance of global bonds by the government.
BI recorded a portfolio investment of US$2.1 billion in the fourth quarter of 2020, while in the previous quarter, it had recorded an outflow of US$1.7 billion in foreign funds. (INE)
Source: Antara News