Tokyo (ANTARA News) - Bank Indonesia (BI) is seeking an increase in Japanese portfolio investors since their percentage is still small.
"We want to increase the portfolio investment from Japan, as it is still small," Senior Deputy Governor of BI Mirza Adityaswara stated here on Friday.
BI has continued to convince Japanese investors to increase investment in Indonesia.
The investment is not only in the form of direct investment but also portfolio investment.
He remarked that Japan has large direct investment in Indonesia
"However, with regard to a portfolio investment, it is not too large," he stated.
From some 40 percent of the total investment in government debt papers, or SBN, the contribution of Japanese investors is still small.
He pointed out that Japanese investors were conservative in terms of portfolio investments.
Through these meetings and forums with fund managers, BI strove to convince Japanese investors to increase their investment in Indonesia.
Through the same forum, BI also sought to continue to improve Japanese direct investment.
On a separate occasion, Director, Chief Representative of the BI Representative Office for East Asia (BI Tokyo) Puji Atmoko stated that Japanese investors viewed Indonesia as a main investment destination country.
Japan Bank for International Cooperation (JBIC) had in 2017 conducted a survey of Japanese manufacturing companies operating outside Japan.
Based on the survey, Indonesia ranked among the top four investment destination countries, after China, India, and Vietnam.
"Indonesia is still considered as an important country in relation to the main investment destination," he said.
He explained that there were four positive economic indicators, which were viewed by Japanese investors as offering an advantage to Indonesia as an investment destination.
The four indicators are the large (market) population, high economic growth in the range of five percent, better infrastructure and industrial links, and a conducive investment climate.
The manufacturing sector has become the main choice of Japanese investment.
In addition, Japan`s economic condition tends to stagnate.
"Although the size of Japan`s economy is very large, its economic growth is stagnant," he added.
Reporting by Achmad Buchori, Azis Kurmala
Editing by Sri Haryati