JAKARTA, April 20 (Reuters) - Foreign direct investment (FDI) in Indonesia rose 11.6 percent in the first quarter of 2011 from a year before as strong economic growth and abundant natural resources attracted investors.
FDI from January to March was 39.5 trillion rupiah ($4.6 billion), up from 35.4 trillion rupiah in the first quarter of 2010, the country’s investment board (BKPM) said on Wednesday.
The BKPM has forecast a 15 percent rise in total investment this year to 240 trillion, with foreign money accounting for 65 percent of that. Last year, foreign investment into Indonesia reached a record 148 trillion rupiah, 71 percent of total investment .
Southeast Asia’s largest economy has been a hot destination for foreign investors in the past two years due to its resilient economic growth.
Standard & Poor’s upgraded Indonesia’s sovereign rating to one notch away from investment grade this month, following Fitch and Moody’s earlier this year.
However, rating agencies have noted that poor infrastructure, an uncertain legal framework and corruption remained obstacles to a higher growth path. ($1 = 8676.000 Indonesian Rupiahs) (Reporting by Aditya Suharmoko; Editing by Alan Raybould)