"I think the trend of Chinese investment will increase drastically in line with Chinese investment in Asia Pacific and even in the world," Investment Coordinating Board (BKPM) Chairman Thomas Lembong said .
Based on 2016 data, China is ranked third among five biggest investors in Indonesia, while Singapore is ranked first. The second place is taken by Japan, followed by Hong Kong in the fourth and the Netherlands in the fifth.
Chinas investment realization reached US $2.7 billion, while that of Singapore was recorded at $9.2 billion. Japans investment realization was recorded at $5.4 billion, Hong Kong at $2.2 billion and the Netherlands at $1.5 billion.
Lembong said that as one of the biggest economies in the Asia Pacific region, it was not surprising if China could invest in many countries.
"Its status as the worlds main trade partner will certainly affect investment trends in the countries concerned," he stated.
"Hence, the upward trend of Chinese investment has not only happened in Indonesia but across the world," he added.
Regarding the issue of foreign workers, especially from China, as well as anti-Chinese sentiment, he said that they have not brought negative impact on Indonesias investment and economy.
"It is still manageable, although it should not be taken lightly," he asserted.
BKPMs deputy for capital investment realization management Azhar Lubis explained that Chinese investment was mostly in the metal and mineral processing sector or smelter and electricity plants.
Hong Kong, on the other hand, has mostly invested in the property sector, accommodation and plantations.
"Realization of combined investment from China and Hong Kong has not as yet surpassed that of Japans, which is ranked second," he asserted.
According to records, realization of investment in Indonesia in 2016 reached Rp612.8 trillion, surpassing the target set at Rp594.8 trillion.
"It was an increase of 12.4 percent from Rp545.4 trillion in 2015," he remarked.(*)
Editor: Heru Purwanto
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