Indonesia's courtship of foreign investors may get a fillip from Chinese and Japanese money seeking a fresh home.
"It's obviously in Indonesia's interest for there to be healthy and strong competition in their infrastructure pipeline," James Cameron, head of project and export finance for the Asia Pacific at HSBC, said earlier this month. "If you look at the size of the infrastructure need within Indonesia, there's going to be a lot of opportunity."
Over the past month, Indonesian President Joko Widodo traveled to Japan and China to woo fresh foreign investment, in a drive likely getting a boost from a ready supply of funds in both countries.
China, Japan to invest
Indonesia is set to benefit from China's drive to internationalize its currency, the yuan, CIMB said in a note last week.
"The warming up of Sino-Indonesian relationship, Indonesia's geopolitical significance and robust fundamentals are supportive," CIMB said. It noted two factors that are likely to boost flows: The Chinese Insurance Regulatory Commission's overseas investment rules now include Indonesia and the creation of the Asia Infrastructure Investment Bank (AIIB) -- with Indonesia as a prospective founding member.