Bloomberg News reported that Indonesia’s Investment Coordinating Board is targeting to see foreign investments growth of 20% year over year in the current year. This would imply foreign investments increasing to US$10 billion as compared to investments of US$8.9 billion in 2005. The Board also targets to approve projects valued at US$16 billion during the current year. Indonesian government is targeting a GDP growth rate of 6.2% in the current year, against an estimated growth rate of 5.5% in 2005. Due to an almost 100% hike in fuel prices, higher inflation and increase in domestic interest rates, Indonesia’s GDP growth is estimated to have slowed down to between 4% and 4.5% during the fourth quarter of 2005.
