Indonesia Overtakes Singapore as the Most Promising Investment Destination

The United Nations Conference on Trade and Development (UNCTAD)'s *World Investment Report 2017* ranks Indonesia 4th as the most prospective investment destination for the 2017-2019 period. Indonesia is ranked below the United States, China, and India. This year, Indonesia climbed four places from its previous ranking of 8th. This position surpasses several Southeast Asian countries, including Singapore and Thailand, as the most prospective investment destination.

In this ranking, Indonesia received an 11 percent response from multinational company executives. The United States, the most prospective investment destination, received a 40 percent response, China 36 percent, and India 20 percent. Several surveyed multinational company executives are confident that investment growth in Southeast Asian regions such as Indonesia, Vietnam, and Singapore will improve in the coming years.

Following Standard & Poor's Global raising Indonesia's rating to BBB- from BB+ on May 19, 2017, UNCTAD now places Indonesia on the list of the most prospective investment destinations. Increased tensions in the Middle East and the Korean Peninsula, coupled with Europe's still-struggling economy, are driving foreign investment towards Southeast Asia. One reason is that the economies of several ASEAN member states are growing at over 5 percent.