Indonesia eyes $50 billion FDI from India in 5 years

KOLKATA: Indonesia is expecting foreign direct investment worth $40-50 billion over the next five years from India.

"Out of the total $150 billion inward FDI aimed by the Indonesia Investment Coordinating Board, BKPM, we hope one-third of the amount could come from the Indian investors," Indonesian Ambassador to India R W Indrakesuma said here today after an interactive session with the members of Indian Chamber of Commerce (ICC).

The body is confident to attract large amount of FDI to Indonesia and Indian entrepreneurs are looking for opportunities in the country, BKPM Director Natalia R Kentijana said.

For inbound FDI, Indonesia is focusing on areas such as infrastructure, maritime, energy and manufacturing.

"Currently, India ranks 22 in FDI ranking to Indonesia but the numbers do not reflect the true picture as lot of Indian investment had been routed through Singapore," ICC member and Honorary Consul General M K Saharia said.

With greater cooperation, direct investment, which is currently not even $1 billion will jump sharply, he said.

The three Indian majors, Adani, Essar and Tatas have signed a MoU for investment in Indonesia that could be around $4-5 billion over a period of time.

Indrakesuma said initial dialogue for Indonesia-India comprehensive economic cooperation agreement has begun but it will take some years to fructify.