Indonesia cbank sees higher FDI in 2011, lower portfolio investment

Indonesia's central bank deputy governor Hartadi A. Sarwono said on Friday he forecast foreign direct investment (FDI) growing to $14.4 billion next year, but saw portfolio investment falling to $8 billion.

"The decline in portfolio investment is affected by narrower yield gaps and concerns over risks in Ireland...But it is estimated to shift to FDI along with better investment prospects in Indonesia," he told Reuters.

Bank Indonesia estimated this year's FDI into Southeast Asia's biggest economy at $12.5 billion and portfolio investment at $15.5 billion, he said.Source: Reuters