The investment would continue to grow because of good handling of inflation and trade balance by the government, HSBC Indonesia Managing Director of Global Markets Ali Setiawan said in a seminar on "HSBC Global Economic Outlook 2014" here on Wednesday.
"Bank Indonesia has taken a series of steps and the government has been consistent in its policy in dealing with structural problem and redressing trade balance," Ali said.
He said foreign investors are still interested in doing business in Indonesia notably Japan.
He said Japan still places Indonesia top of investment destination list.
"Indonesia has done good job in the eye of international community. Indonesia is the most interesting not only for Japanese investors . European and US investors also are similarly interested," he said.
Investment market is still big in Indonesia, he added, citing Java is still; open for new investment such as in infrastructure.
"In infrastructure sector we are still lagging behind neighboring countries. Fundamentally Indonesian economy is still growing, therefore, there was cause for much concern," he said.
The government, however, needs to be more transparent and consistent in carrying out its policies, he said.
HSBC Economist Su Sian Lim said Indonesia and other ASEAN countries have basically shown strong economic performance.
"Huge domestic demand and relatively low unemployment rate are an advantage from the point of retail and household shopping as well as business sector," Su San said.
She said steps taken by Bank Indonesia followed with fiscal policy of the government through the finance ministry aimed at narrowing current account deficit, controlling exchange rate, curbing inflation and maintaining foreign reserve have worked well.
"It has to be acknowledged that oil fuel price adjustment in June 2013 had helped reduce current account deficit," she added.