Indonesia

The net value of UK investments into Indonesia at the end of 2006 was £1.5 billion according to UK ONS statistics. This total figure has been relatively consistent over time, increasing from £1 billion in 2002 at an average of almost 11% per annum. (View UK FDI analysis by sector for 2006)

Key points are:

• There is a lack of comprehensive sectoral data for Indonesia for confidentiality reasons. Unlike for Russia and China, GHK could not identify supplementary sources of data for Indonesia that can provide more comprehensive sector analysis than that offered by the UK ONS;
• The data do suggest that UK companies are much more likely to invest in primary / extractive sectors and / or service sectors, rather than manufacturing, which accounts for less than 5% of total UK investments to the end of 2006.
• The most significant sector, for which data is available, is transport and communications, although this represents only 11% of total UK investment into Indonesia.
• According to official Indonesian statistics, the UK is fifth in terms of foreign investors. Although accurate figures for total UK investment appear to be unavailable (as much of the investment described as British comes through the British Virgin Islands), and estimates suggest the figure could be US$20 billion or more, around US$11 billion of which is likely to be concentrated in the oil and gas sector. This suggests a large disparity between the ONS FDI data described above and these Indonesian statistics.