Indonesia records increased foreign investment in Q2

JAKARTA, July 24 (Reuters): Indonesia's investment board said the country attracted more foreign investment in the second quarter than the first, in spite of concerns interest would be cut by controversy over a mineral ore export ban and political uncertainty because of elections.

Sectors attracting the most commitments for foreign direct investment (FDI) in April-June were transport, warehousing, telecommunications, food, and the mining industry, the Investment Coordinating Board (BKPM) said on Thursday.

It said the biggest commitments, by country of origin, were from Singapore, followed by Malaysia, Japan, Britain and the U.S.

The commitments "signify the level of trust in Indonesia's economic and political stability," Mahendra Siregar, investment board chief, told reporters.

The agency reported FDI commitments in the second quarter of 78 billion rupiah, or 16.9 percent more than the rupiah amount reported for April-June 2013. In the latest quarter, the BKPM gave the total as equivalent to $7.4 billion, using a conversion rate of 10,500 rupiah to the dollar, against the current rate of around 11,500.

The growth was significantly higher than in the first quarter, when FDI approvals were reported as 72 trillion rupiah, a 9.8 percent increase from January-March 2013 - and the first time in years that the rise was less than 10 percent.