Foreign investment soars 54%

Coordinating Board of Investment (BKPM) mentioned that foreign direct investment (FDI) had reached US$13.95 billion per October 2008, soaring 54% as compared with the same period in 2007. Muhammad Lutfi, director of the board, admitted the investment growth during January-August 2008 was very high. But Lutfi reminded that the larger foreign investment at home would make vulnerable shock through capital outflow. On the other side, domestic investment during January-August 2008 declined 52% to be Rp16 trillion, as compared to the same period in 2007.