Why Australian investors are eyeing Indonesia

Image: ©Gettys / chrisinthai.

Ten Australian companies are interested in investing $4-$5 billion in Indonesia, according to The Investment Coordinating Board (BKPM), an investment service agency of the Indonesian Government. Notably, hotel investment is a key factor attracting interest. 

In 2016, Australian investments in Indonesia reached $174 million, a slight increase of 4 percent from $167 million in the previous year. BKPM targets Australia’s total investment in Indonesia to reach $3 billion in the next three to five years. The latest survey conducted by Austrade—a government institution tasked on promoting and attracting investments to and from Australia—on the country’s business community placed Indonesia at fifth place on investment priority.

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Thomas Lembong, head of BKPM, said the 10 potential investments were from the hotel, mining, food and beverage, tourism and infrastructure sectors.

The business meeting was also aimed at gathering the experience of the businesses when conducting business in Indonesia.

“One of the investors in the hotel sector plans to expand its hotel network in Indonesia to 100 over the next three to four years,” Lembong said. ”The hotel investor owns 8,000 hotels worldwide, 1,200 hotels in China, and only 10 hotels in Indonesia.”