By NNN-BERNAMA,
Kuala Lumpur : Indonesia does not expect foreign direct investments (FDIs) this year to be affected by a projected lower growth rate and inflation of between 11 and 12 per cent, following increases in food and fuel prices.
Indonesian Minister of Trade Mari Pangestu said here Sunday that the country’s growth was estimated at six per cent this year.
“Most countries in the region have similar experiences of higher inflation rates and are revising growth figures downwards. However, we do not expect the lower growth rate to have an impact on FDIs into the country.
“It is only a slight downward revision and we expect investments to continue,” Mari told reporters on the sidelines of the 2008 World Economic Forum on East Asia here.
She said Indonesia’s export growth was quite robust in the first quarter of the year because of high commodity prices.
“We should also look at the positive aspects of high commodity prices providing an opportunity for investments in agriculture as well as the resource-based sector,” she said.
According to Mari, in the first quarter of 2008, Indonesia’s agricultural sector recorded six per cent growth.