Bloomberg.com, China’s investment in Indonesia has more than doubled since 2015 as President Joko Widodo’s five meetings with Xi Jinping in the past two years start to pay off.
Foreign direct investment from China stood at $1.6 billion in January to September, up from about $600 million for the whole of last year, according to figures from the Indonesia Investment Coordinating Board. Chinese investors pledged $6.1 billion in investment in Indonesia in the nine-month period.
China is now the No. 3 investor in Indonesia behind Singapore and Japan, overtaking the U.S. this year, as the world’s second-largest economy looks to shift more of its excess manufacturing capacity offshore. It reflects China’s deepening ties with Indonesia after becoming the nation’s biggest trading partner five years ago and is a win for Widodo as he pushes ahead with an ambitious program to build roads, ports and railways.
“The potential of realized investment from China will remain high in the coming years and it will remain in the top five,” said Azhar Lubis, the board’s deputy chairman for investment supervision. “The biggest challenge is how that interest or those plans can be realized soon.”