Malaysia is one of the potential countries for investment in Indonesia. Despite a decline in 2016, Malaysia remained in the top 10 countries with the largest investments in Indonesia. The Indonesian Investment Coordinating Board (BKPM) recorded that foreign direct investment (FDI) from Malaysia reached US$1.1 billion, equivalent to Rp 14.84 trillion. This figure is down 63.74 percent from the previous year's US$3.07 billion.
The Indonesia-Malaysia Business Matching business forum, held at the Gran Melia Hotel, Jakarta on May 23rd, revealed investment potential exceeding Rp 120 trillion. Electricity and cement projects alone presented investment potential worth Rp 61.1 trillion. Furthermore, there are investment opportunities in infrastructure and property projects offered by Indonesian state-owned enterprises (BUMNs) valued at Rp 65.6 trillion. One example is UEM Group Berhad Malaysia, which will add US$3-4 billion in investment to the Palimanan-Solo toll road project. Malaysian investor interest in investing in Indonesia remains high.
Up to the first quarter of 2017, Malaysian investment in Indonesia reached US$215.49 million across 332 projects. This investment amount doubled compared to the same quarter in 2016. Malaysia's investment value in the first quarter of this year ranked 10th among countries with the largest investments in Indonesia.
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