China and South Korea have rapidly accelerated investment into Indonesia, official data shows, while Japan recedes as a source of capital for Southeast Asia’s biggest economy, reported Nikkei Asia.
Chinese foreign direct investment in Indonesia, including flows from Hong Kong, rose 11% to $8.4 billion last year, according to the Indonesian Investment Coordinating Board. FDI from South Korea jumped 64% to $1.8 billion.
This growth contrasts with a clear decline in Japanese investment, which once led Indonesia’s FDI trends. Flows from Japan fell 40% in 2020 to $2.6 billion, reported the Nikkei Asia.
“It comes as a shock that China and South Korea have increased investment at a time when rising coronavirus infections have stalled Indonesia’s economy,” a country representative for a Japanese company working here says.