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Indonesia’s new investment ministry faces headwinds

Tuesday, May 11, 2021


The government hopes greater domestic and foreign investment can help turn around the pandemic-hit economy. The governor of Bank Indonesia (BI), the central bank, last week said GDP should grow by 4.6% in 2021, compared with last year’s 2.1% contraction.


  • Indonesia will count on private vaccination, whereby companies buy state-procured jabs for their staff, to help speed up its roll-out.
  • The Indonesia Investment Authority, a new sovereign wealth fund, will prioritise attracting more investment into the infrastructure sector.
  • Singapore will continue to be Indonesia’s largest source of FDI in the short term.

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